Homeowners have more real estate equity than ever before, according to data from the federal government and an investment group.
Total homeowner's equity in the U.S. reached $35.1 trillion in this year's second quarter, data from the Federal Reserve showed.
It fell as low as $29.8 trillion in the last quarter of 2022, but that is way above a most recent low of $8.22 trillion in the first quarter of 2012, according to the Fed data.
Homeowner's equity has skyrocketed 15,845% over the past seven decades from $219 billion in 1951.
Another indicator of homeowner wealth is that households have the least mortgage debt relative to their property value in almost 70 years as homes appreciate in value and homeowners pay down their mortgages, according to data from Bespoke Investment Group.
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Household mortgage debt as a percentage of real estate value has halved from 53% in December 2011 to 27.3% in 2021.
"Consumer balance sheets are rock solid, which is another reason to question the narrative of impending recession," Bespoke said.
Mortgage rates fell to their lowest point in more than 18 months last week. That's encouraging homebuyers to refinance the amount they have left to pay on their home loans.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) decreased to 6.29 percent from 6.43 percent, marking the sixth straight week in declining rates, according to the Mortgage Bankers Association (MBA).
Price Action: Mortgage lenders saw losses and gains into Friday's early-afternoon trading.
- Rocket Companies Inc. (NYSE:RKT) rose 6.11% to $19.90
- Bank of America (NYSE:BAC) slipped 0.46% to $38.60
- Better Home & Finance Holding Company (NASDAQ:BETR) gained 1.04% to $16.50
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