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The Home ATM, aka Mortgage Equity Withdrawal (MEW)


by Calculated Risk on 12/09/2021 02:46:00 PM

Today, in the Real Estate Newsletter: The Home ATM in Q3 2021


In Q3 2021, mortgage debt increased $230 billion, the largest quarterly increase since 2006.

For Q3 2021, the Net Equity Extraction was $147 billion, or 3.24% of Disposable Personal Income (DPI). The last two quarters have shown a sharp increase in equity extraction compared to recent years, but the level is nothing like the amount of equity extraction during the housing bubble as a percent of DPI. During the housing bubble we saw several quarters with MEW above 8% of DPI.

The bottom line is the recent increase in MEW is not concerning – it is far less as a percent of disposable personal income than during the bubble, and most homeowners have substantial equity.

Fed’s Flow of Funds: Household Net Worth Increased $2.4 Trillion in Q3

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