Contrasting recoveries in home equity and mortgage debt say a lot about why homeownership is still complicated.
by Andrea Riquier
Years after the housing market imploded, home equity held by U.S. homeowners is closing in on its previous peak even as the total amount of mortgage debt outstanding remains well below past highs.
It’s good news that homeowners have spent the years since the crisis repairing their balance sheets—and that lenders are more prudent. But with the homeownership rate falling to a 51-year low, it’s worth a closer look at the story behind the levels of debt and equity, shown on this chart.