Consumers are heading for trouble
Only $200 billion is left in excess savings, which is keeping households afloat
2 months ago, this number was at $500 billion
At current rate, savings will be depleted by Sept 2023 pic.twitter.com/Q03sZhZMrn
— Game of Trades (@GameofTrades_) August 16, 2023
Homeowners are tapping into their home equity to get cash
“Washington, DC CNN—With home values remaining strong across the country, Americans are tapping into their home equity to pay for renovations and debts.
Average mortgage rates are close to 7% and with low inventory in most housing markets across the country, home prices have held firm after surging during the pandemic.
That means homeowners are now collectively sitting on nearly $30 trillion in home equity, according to the St. Louis Federal Reserve.
As a result, originations of Home Equity Lines of Credit (known as HELOCs) and home equity loans increased 50% in 2022 compared to two years earlier, according to the Mortgage Bankers Association.”