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Mortgage Equity Withdrawal slightly positive in Q4

Posted On: Mar 20, 2018   |   Posted By: Calculated Risk

Mortgage Equity Withdrawal slightly positive in Q4

Note: This is not Mortgage Equity Withdrawal data from the Fed. The last MEW data from Fed economist Dr. Kennedy was for Q4 2008.
The following data is calculated from the Fed's Flow of Funds data and the BEA supplement data on single family structure investment. This is an aggregate number, and is a combination of homeowners extracting equity - hence the name "MEW" - and normal principal payments and debt cancellation (modifications, short sales, and foreclosures).
For Q4 2017, the Net Equity Extraction was a positive $13 billion, or a positive 0.4% of Disposable Personal Income .

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