The historic run-up in home prices during the first two years of the pandemic gave homeowners record amounts of new home equity. Since May, however, about $1.5t of that has vanished, according to Black Knight, a mortgage software and analytics company. The average borrower has lost $30,000 in equity.
“While additional declines may be on the horizon, homeowner positions remain broadly strong,” noted Ben Graboske, Black Knight’s president of data and analytics.