Where Most Store Wealth (Patreon)

American mortgages could be the economy's shining star. Even though this is US data, I am pretty sure it is similar all around the world if not even higher especially in places like Europe where loan to value ratios are far lower.

The average loan-to-value ratio for all existing US mortgages stands at a modest 46.9%.

Only a tiny sliver - a mere 0.3% of borrowers owe more than their homes are worth.

When mtg rates and HELOC rates fall, I reckon many will borrow against their equity and deploy into risk assets. It is what I did in the past.

It shows that real estate has not crashed and we are in nothing like the situation during the GFC where a far far higher percentage were underwater. AT this time in 2010 a massive 23% of homes with mortgages were underwater!!! ie Negative Equity.

h.t Sanjay for the image.