Cashing out home equity
We have a story in real estate today about home equity lines of credit.
Last spring, Mark Zandi of Moody's Economy presented this slide in his housing forecast.
"The red line represents the savings rate of homeowners who have taken out home equity lines of credit, so they have cashed out (equity from their homes). You can see that their savings rate has declined sharply and their savings rate is now a whopping negative eight percent," Zandi said.
Who w ould have thought that the savings rate of renters would have ever have appeared "stronger" than that of some homeowners?
