Posted on 08/10/2023 4:57:37 PM PDT by millenial4freedom
As massive consumer tailwinds like excess savings fade, one wonders what — if anything — could help fuel the next leg of the consumer spending boom that has been juicing economic activity.
In a research note Tuesday, Wells Fargo economists Tim Quinlan and Shannon Seery put a spotlight on a potential whopper: home equity.
"Strong home price appreciation in the years following the pandemic may be an underappreciated tailwind for the household sector," the economists wrote. "The total value of the U.S. single-family market breached $40 trillion last year, and the mix between debt and equity has shifted over time with the portion held by homeowners in the form of equity trending higher since about 2012."
(Excerpt) Read more at finance.yahoo.com ...
Agreed. Now would be the worst
time to borrow based on equity.
A lot have borrowed against or
cashed in their 401K’s. And
equity gained will be relied upon
for retirement income.
Future headline.
You’ll soon own nothing. Here’s why that’s a good thing.
Interest rates are so high. I sincerely doubt people will be taking out loans on home equity for frivolous purchases. Maybe to buy food.
This reeks of ghetto mentality... it’s also a set up for another housing bust. The money ‘in your home’ isn’t real until you sell your home. Before that time ‘taking it out’ is nothing more than a loan you have to pay back.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.