EXCELLENT EQUITY

While mortgage debt is up $2.88 trillion from the Housing Bubble peak, as a percentage of GDP it’s 44.6%. During the Housing Bubble, that percentage exceeded 70%. Better yet, the last time mortgage debt as a percentage of GDP was 44.6% was 2000. Back then household real estate values as a percent of GDP was 120%, today it’s 160%. This means most homeowners have large equity cushions in their homes.