Homeowners traditionally use home equity as a financial resource for expenses, but a recent report reveals that many are now locked out. Due to elevated interest rates and job instability following the pandemic, over 4.6 million homeowners are at risk of losing access to approximately $731 billion in home equity. This situation results from rising borrowing costs and job volatility that may lower credit scores, hindering opportunities to refinance or receive loans against home equity despite significant growth in total American home equity, which reached $34.7 trillion last year.
According to a study conducted by home equity investment firm Point, more than 9% of all homeowners with a mortgage experience a job loss or another negative career shift in a given year.
Home equity has been a vital resource for Americans, but high interest rates and job instability are blocking access for millions, potentially denying them $731 billion.
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