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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory
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To: orkrious who wrote (54214)2/18/2006 7:32:02 PM
From: GraceZ  Read Replies (3) of 110194
 
I think most people (at least those is desperate straights) have already extracted as much equity as they can.

Most of the mortgage debt is held by a small minority of homeowners. 40% have zero mortgage debt, half of the remaining homeowners have better than 50% equity, that leaves 30% of the homeowners with most of the mortgage debt. The percentage of those with high risk levels of housing expense among homeowners is less than 10%.

Renters are in far worse shape with over 20% in the dangerous range where they spend more than half their after tax income on housing expense, the average is 29% of after tax income spent on housing whereas for homeowners it is only 18% after the mortgage interest tax break and 20% before.

Lots of equity out there to tap, but there is a mismatch between those who might need to tap it and those that have it.
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