The Federal Housing Finance Authority (FHFA) recently released data on the amount of home equity held by homeowners in the U.S.

Homeowner equity refers to the difference between a home’s current market value and the current balance of all mortgages on the home.  (For example, if a home has a current value of $500,000 and a mortgage of $250,000 the owner has $250,000 of equity).  Home equity is owned by the homeowner and is an important asset that can potentially be used by the homeowner to:

  • Make Home Improvements;
  • Payoff debt;
  • Consolidate high interest debt;
  • Improve financial and retirement planning;
  • Invest in other assets; or
  • Establish an emergency fund.

As of April 2023, over 83% of homes with mortgages had equity of 30% or more.  This is the highest percentage of homes with greater than 30% equity in the past 10 years.  This trend is consistent with home price appreciation during this period.  A large percentage of homeowners that purchased or refinanced their home prior to July of 2022 have significant appreciation in their home.

It is noteworthy that less than .2% of all homes with mortgages have negative equity.  This is the lowest level of homes with negative equity since 2013.


(Source: National Mortgage Database (NMDB) Aggregate Statistics, Federal Housing Finance Authority)