The news from the housing trenches is still mixed–this glass seems to be both empty and full at the same time. But this article from Bloomberg caught our eye: home equity (your home’s worth minus any debt you owe on the home) saw its biggest jump in 60 years last quarter–up $6.7 trillion, or 7.3%.
Homeowners, clearly, have had it with mortgage debt. They are moving to refinance, and bringing as much cash as they can to pay down their home principal. Simply, they want to be on stronger financial footing.
As our world reels from debt crises on an individual, corporate, and even national level (think Greece or Spain), this shift in thought is darned encouraging.
What’s your take on home equity? Are you making efforts to decrease your home equity, either by paying more every month or refinancing? Or are you just holding firm?