FRB: FEDS paper 2007-2007-20--Data, screen reader format--April 2007

Finance and Economics Discussion Series

Sources and Uses of Equity Extracted from Homes
Alan Greenspan and James Kennedy
2007`-20

Screen reader format

Full paper (400K KB PDF) | Data (Excel file 176K KB XLS)

	1991	1992	1993	1994	1995	1996	1997	1998	1999	2000	2001	2002	2003	2004	2005	2006	Average 1991-2006
(1) Value of existing homes sold (implied)	425.6	401.6	408.3	449.0	419.3	521.3	533.9	655.6	800.0	875.2	946.8	1,100.6	1,376.9	1,572.2	1,915.6	1,654.2	878.5
(2) Value of existing homes sold (implied) - Sellers' debt cancellation	159.0	183.9	210.4	229.4	234.6	262.0	286.6	337.4	372.2	397.3	438.4	501.8	592.8	707.3	799.7	779.5	405.8
(3) Value of existing homes sold (implied) - Closing costs on existing homes paid in cash	34.9	33.0	32.6	35.6	32.9	40.9	41.9	50.9	61.4	66.7	71.2	82.2	102.0	116.7	141.9	122.9	66.7
(4) Value of existing homes sold (implied) - Home equity loans paid off at the time of sale	8.7	9.3	9.8	10.2	10.8	12.4	14.6	17.4	19.0	22.1	25.6	29.9	37.0	51.1	64.5	66.3	25.5
(5) Net proceeds available to sellers of existing homes [(1)-(2)-(3)-(4)]	223.1	175.4	155.5	173.8	141.1	206.0	190.8	249.9	347.3	389.0	411.6	486.7	645.1	697.1	909.5	685.4	380.5
(6) Value of existing homes sold by type: Owner-occupied homes [(1-(18))*(1)]	395.4	373.7	379.6	415.0	385.0	477.9	485.3	596.7	722.4	785.1	844.9	969.7	1,198.1	1,322.3	1,601.2	1,382.8	771.0
(7) Value of existing homes sold by type: Owner-occupied homes [(1-(18))(1)] - Repeat buyers [(19)(6)]	221.4	211.2	216.4	236.5	219.4	272.4	276.6	340.1	411.8	455.4	498.5	581.8	718.9	806.6	976.8	843.5	455.5
(8) Value of existing homes sold by type: Owner-occupied homes [(1-(18))*(1)] - Non-repeat buyers [(6)-(7)]	174.0	162.6	163.2	178.4	165.5	205.5	208.7	256.6	310.6	329.8	346.4	387.9	479.3	515.7	624.5	539.3	315.5
(9) Value of existing homes sold by type: Rental and vacant homes [(18)*(1)]	30.2	27.9	28.7	34.0	34.3	43.4	48.5	58.9	77.6	90.1	101.8	130.9	178.8	249.9	314.4	271.5	107.6
(10) Sellers' debt cancellation by type: Owner-occupied homes [{(6)/(1)}*(2)]	147.7	171.1	195.6	212.0	215.4	240.1	260.5	307.0	336.1	356.5	391.2	442.1	515.8	594.9	668.5	651.6	356.6
(11) Sellers' debt cancellation by type: Owner-occupied homes [{(6)/(1)}(2)] - Repeat buyers [{(7)/(6)}(10)]	82.7	96.7	111.5	120.8	122.8	136.9	148.5	175.0	191.6	206.7	230.8	265.3	309.5	362.9	407.8	397.5	210.4
(12) Sellers' debt cancellation by type: Owner-occupied homes [{(6)/(1)}*(2)] - Non-repeat buyers [(10)-(11)]	65.0	74.4	84.1	91.2	92.6	103.3	112.0	132.0	144.5	149.7	160.4	176.9	206.3	232.0	260.7	254.1	146.2
(13) Sellers' debt cancellation by type: Rental and vacant homes [(2)-(10)]	11.3	12.8	14.8	17.4	19.2	21.9	26.1	30.4	36.1	40.8	47.2	59.7	77.0	112.4	131.2	127.9	49.1
(14) Decomposition of the net proceeds available to sellers of existing homes: Owner-occupied homes [(6)-(10)-{(6)/(1)}*{(3)+(4)}]	207.2	163.2	144.6	160.7	129.6	188.9	173.5	227.5	313.6	348.9	367.3	428.8	561.4	586.3	760.3	572.9	333.4
(15) Decomposition of the net proceeds available to sellers of existing homes: Owner-occupied homes [(6)-(10)-{(6)/(1)}{(3)+(4)}] - Repeat buyers[{(7)/(6)}(14)]	116.1	92.2	82.4	91.6	73.8	107.7	98.9	129.7	178.8	202.4	216.7	257.3	336.9	357.6	463.8	349.5	197.2
(16) Decomposition of the net proceeds available to sellers of existing homes: Owner-occupied homes [(6)-(10)-{(6)/(1)}*{(3)+(4)}] - Non-repeat buyers[(14)-(15)]	91.2	71.0	62.2	69.1	55.7	81.2	74.6	97.8	134.8	146.6	150.6	171.5	224.6	228.7	296.5	223.4	136.2
(17) Decomposition of the net proceeds available to sellers of existing homes: Rental and Vacant [(5)-(14)]	15.9	12.2	10.9	13.1	11.5	17.1	17.3	22.4	33.7	40.1	44.2	57.9	83.7	110.8	149.3	112.5	47.0
(18) Memo: Rental/vacant share of the value of homes purchased	0.0716	0.0696	0.0707	0.0761	0.0825	0.0839	0.0913	0.0903	0.0974	0.1033	0.1079	0.1189	0.1303	0.1599	0.1641	0.1641	0.1051
(19) Memo: Repeat buyers' share of home purchases (AHS & Chicago Title)	0.5600	0.5650	0.5700	0.5700	0.5700	0.5700	0.5700	0.5700	0.5700	0.5800	0.5900	0.6000	0.6000	0.6100	0.6100	0.6100	0.5822

Distribution of the Net Proceeds from Existing Home Sales
	Fixed share:	1991	1992	1993	1994	1995	1996	1997	1998	1999	2000	2001	2002	2003	2004	2005	2006	Average 1991-2006
(20) Repeat buyers [(15)]		116.1	92.2	82.4	91.6	73.8	107.7	98.9	129.7	178.8	202.4	216.7	257.3	336.9	357.6	463.8	349.5	197.2
(21) Repeat buyers [(15)] - Cash used to purchase a home [0.87*(20)]	0.870	101.0	80.2	71.7	79.7	64.2	93.7	86.0	112.8	155.5	176.1	188.6	223.8	293.1	311.1	403.5	304.1	171.6
(22) Repeat buyers [(15)] - PCE [0.03*(20)]	0.030	3.5	2.8	2.5	2.7	2.2	3.2	3.0	3.9	5.4	6.1	6.5	7.7	10.1	10.7	13.9	10.5	5.9
(23) Repeat buyers [(15)] - Financial investments and other [0.1*(20)]	0.100	11.6	9.2	8.2	9.2	7.4	10.8	9.9	13.0	17.9	20.2	21.7	25.7	33.7	35.8	46.4	34.9	19.7
(24) Non-repeat buyers [(16)]		91.2	71.0	62.2	69.1	55.7	81.2	74.6	97.8	134.8	146.6	150.6	171.5	224.6	228.7	296.5	223.4	136.2
(25) Non-repeat buyers [(16)] - PCE [0.15*(24)]	0.150	13.7	10.6	9.3	10.4	8.4	12.2	11.2	14.7	20.2	22.0	22.6	25.7	33.7	34.3	44.5	33.5	20.4
(26) Non-repeat buyers [(16)] - Financial investments and other [0.85*(24)]	0.850	77.5	60.3	52.9	58.7	47.4	69.1	63.4	83.1	114.6	124.6	128.0	145.8	190.9	194.4	252.0	189.9	115.8
(27) Rental and vacant homes [(17)]		15.9	12.2	10.9	13.1	11.5	17.1	17.3	22.4	33.7	40.1	44.2	57.9	83.7	110.8	149.3	112.5	47.0
(28) Rental and vacant homes [(17)] - Cash used to purchase a home [0.87*(27)]	0.870	13.8	10.6	9.5	11.4	10.0	14.9	15.1	19.5	29.3	34.9	38.5	50.4	72.8	96.4	129.9	97.9	40.9
(29) Rental and vacant homes [(17)] - PCE [0.03*(27)]	0.030	0.5	0.4	0.3	0.4	0.3	0.5	0.5	0.7	1.0	1.2	1.3	1.7	2.5	3.3	4.5	3.4	1.4
(30) Rental and vacant homes [(17)] - Financial investments and other [0.1*(27)]	0.100	1.6	1.2	1.1	1.3	1.2	1.7	1.7	2.2	3.4	4.0	4.4	5.8	8.4	11.1	14.9	11.2	4.7
(31) Total [(5)]		223.1	175.4	155.5	173.8	141.1	206.0	190.8	249.9	347.3	389.0	411.6	486.7	645.1	697.1	909.5	685.4	380.5
(32) Total [(5)]: Cash used to purchase a home [(21)+(28)]		114.8	90.8	81.2	91.1	74.3	108.6	101.1	132.3	184.8	211.0	227.0	274.2	365.9	407.5	533.3	401.9	212.5
(33) Total [(5)]: PCE [(22)+(25)+(29)]		17.6	13.8	12.1	13.5	10.9	15.9	14.7	19.2	26.6	29.3	30.4	35.2	46.3	48.4	62.9	47.4	27.8
(34) Total [(5)]: Financial investments and other [(23)+(26)+(30)]		90.7	70.8	62.2	69.2	55.9	81.5	75.0	98.3	135.9	148.8	154.1	177.3	232.9	241.2	313.3	236.1	140.2

Distribution of Equity Extraction to Consumer Spending, Home improvements, Investments, and Debt Repayment
	1991	1992	1993	1994	1995	1996	1997	1998	1999	2000	2001	2002	2003	2004	2005	2006	Average 1991-2000	Average 2001-2005	Average 1991-2005
(1) Free cash resulting from equity extraction [(2)+(3)+(4)]:	262.2	212.2	193.2	223.4	184.5	277.1	276.0	346.9	467.2	553.4	626.9	756.0	1,000.8	1,165.1	1,423.1	1,126.2	299.6	994.4	531.2
(2) Free cash resulting from equity extraction [(2)+(3)+(4)]: Home sales [(28)]	223.1	175.4	155.5	173.8	141.1	206.0	190.8	249.9	347.3	389.0	411.6	486.7	645.1	697.1	909.5	685.4	225.2	630.0	360.1
(3) Free cash resulting from equity extraction [(2)+(3)+(4)]: Home equity loans net of unscheduled payments [(47)-(48)-(16)]	21.3	11.4	11.2	32.2	30.7	49.2	59.4	50.1	74.4	131.8	109.4	129.3	182.5	322.3	316.2	267.1	47.2	211.9	102.1
(4) Free cash resulting from equity extraction [(2)+(3)+(4)]: Cash out refinancings [(85)]	17.8	25.3	26.4	17.4	12.8	21.8	25.9	46.9	45.6	32.6	105.9	140.0	173.2	145.7	197.3	173.7	27.2	152.4	69.0
(5) Used For: Repayment of non-mortgage debt [(30)+(49)+(86)]	12.1	11.3	12.5	18.6	16.1	24.8	28.9	32.5	39.6	55.1	61.5	71.0	93.5	124.2	143.6	125.1	25.2	98.8	49.7
(6) Used For: Repayment of non-mortgage debt [(30)+(49)+(86)] - As a share of consumer credit debt outstanding, beg. of year	0.0147	0.0139	0.0152	0.0210	0.0158	0.0212	0.0227	0.0242	0.0275	0.0354	0.0352	0.0374	0.0465	0.0587	0.0643	0.0564	0.0212	0.0484	0.0302
(7) Used For: Home improvements [(50)+(87)]	13.2	12.8	13.2	16.4	14.9	24.5	29.2	33.6	41.0	54.8	71.6	88.7	116.0	149.6	165.5	142.6	25.4	118.3	56.3
(8) Used For: Home improvements [(50)+(87)] - As a share of outlays for residential improvements (NIPA)	0.2318	0.2203	0.1949	0.2142	0.1868	0.2959	0.3285	0.3659	0.4315	0.5327	0.6548	0.7669	0.9232	1.0840	1.0860	0.9129	0.3002	0.9030	0.4113
(9) Used For: Personal consumption expenditures [(31)+(51)+(88)]	26.3	21.3	19.3	22.8	19.6	30.2	32.4	37.5	51.1	64.3	79.2	101.1	133.4	170.0	182.2	147.7	32.5	133.2	66.1
(10) Used For: Personal consumption expenditures [(31)+(51)+(88)] - As a share of total PCE	0.0066	0.0050	0.0043	0.0048	0.0039	0.0057	0.0058	0.0064	0.0081	0.0095	0.0112	0.0138	0.0173	0.0207	0.0208	0.0159	0.0060	0.0168	0.0096
(11) Used For: Acquisition of assets and other [(32)+(52)+(89)-(16)]	95.8	75.9	67.0	74.4	59.6	89.0	84.3	111.0	150.7	168.2	187.5	221.1	292.0	313.9	398.5	308.9	97.6	282.6	159.3
(12) Memo: PCE plus non-mortgage debt repayment [(5)+(9)]	38.4	32.6	31.8	41.4	35.8	55.0	61.4	70.0	90.8	119.4	140.7	172.1	227.0	294.2	325.8	272.8	57.7	231.9	115.8
(13) Memo: PCE plus non-mortgage debt repayment [(5)+(9)] - As a share of total PCE	0.0096	0.0077	0.0071	0.0087	0.0072	0.0105	0.0111	0.0119	0.0145	0.0177	0.0199	0.0234	0.0295	0.0358	0.0373	0.0294	0.0106	0.0292	0.0168
(14) Memo: HE debt repayment resulting from home sales and refis [(27)+(84)]	16.8	19.1	20.8	24.1	18.4	27.8	28.9	41.2	54.6	64.0	77.1	79.5	97.4	145.7	190.3	171.7	31.6	118.0	60.4
(15) Memo: HE debt repayment resulting from home sales and refis [(27)+(84)] - As a share of HE debt outstanding, end of previous year	0.0782	0.0861	0.0960	0.1144	0.0831	0.1171	0.1099	0.1387	0.1760	0.1914	0.1893	0.1786	0.1944	0.2456	0.2445	0.1879	0.1191	0.2105	0.1496
(16) Memo: Unscheduled regular mortgage payments	2.4	2.6	2.7	2.9	3.1	3.2	3.4	3.7	4.1	4.4	4.8	5.3	6.1	6.8	7.7	8.6	3.3	6.1	4.2
(17) Memo: Closing costs on existing home sales, refinancings, and home equity loans [(26)+(48)+(83)]	42.1	50.1	50.7	42.9	37.1	47.7	49.6	69.4	73.7	73.7	96.1	116.8	151.7	144.7	169.3	147.0	53.7	135.7	81.0
(18) Memo: Gross equity extraction	116.3	117.7	110.2	106.5	119.9	154.2	172.9	283.0	316.9	303.3	413.7	611.1	656.1	899.3	907.8	646.1	180.1	697.6	352.6
(19) Memo: Turnover extraction + change in home equity loans outstanding net of unscheduled payments + gross cash out [(24)+(46)+(82)-(16)]	161.4	133.2	117.4	137.8	103.1	177.4	176.3	232.8	320.5	377.6	442.5	529.9	692.0	803.7	971.9	769.5	193.7	688.0	358.5
(20) Memo: Turnover extraction + change in home equity loans outstanding net of unscheduled payments + gross cash out [(24)+(46)+(82)-(16)] - Repayments discrepancy [(19)-(18)]	45.1	15.5	7.2	31.3	-16.8	23.3	3.4	-50.3	3.6	74.3	28.8	-81.2	35.9	-95.5	64.1	123.5	13.7	-9.6	5.9

Equity Extracted Through Home Sales.
	1991	1992	1993	1994	1995	1996	1997	1998	1999	2000	2001	2002	2003	2004	2005	2006	Average 1991-2000	Average 2001-2005	Average 1991-2005
(21) Value of existing home sales (implied)	425.6	401.6	408.3	449.0	419.3	521.3	533.9	655.6	800.0	875.2	946.8	1,100.6	1,376.9	1,572.2	1,915.6	1,654.2	549.0	1,382.4	826.8
(22) Value of existing home sales (implied): Existing home extensions	282.8	272.5	281.8	320.6	300.7	373.9	384.5	472.0	579.5	625.8	666.3	757.8	916.3	1,066.1	1,295.2	1,150.6	389.4	940.3	573.1
(23) Value of existing home sales (implied): Sellers' debt cancellation	159.0	183.9	210.4	229.4	234.6	262.0	286.6	337.4	372.2	397.3	438.4	501.8	592.8	707.3	799.7	779.5	267.3	608.0	380.9
(24) Turnover Extraction [(22)-(23)]	123.8	88.6	71.5	91.2	66.1	111.9	97.9	134.7	207.3	228.5	227.9	255.9	323.5	358.7	495.5	371.0	122.1	332.3	192.2
(25) Turnover Extraction [(22)-(23)] + Cash used to purchase existing homes	142.9	129.1	126.5	128.4	118.6	147.4	149.4	183.5	220.4	249.4	280.4	342.8	460.6	506.1	620.4	503.7	159.6	442.1	253.7
(26) Turnover Extraction [(22)-(23)] - Total closing costs paid in cash [(41)]	34.9	33.0	32.6	35.6	32.9	40.9	41.9	50.9	61.4	66.7	71.2	82.2	102.0	116.7	141.9	122.9	43.1	102.8	63.0
(27) Turnover Extraction [(22)-(23)] - Home equity loans paid off at time of sale	8.7	9.3	9.8	10.2	10.8	12.4	14.6	17.4	19.0	22.1	25.6	29.9	37.0	51.1	64.5	66.3	13.4	41.6	22.8
(28) Turnover Extraction [(22)-(23)] = Net proceeds available to sellers of existing homes	223.1	175.4	155.5	173.8	141.1	206.0	190.8	249.9	347.3	389.0	411.6	486.7	645.1	697.1	909.5	685.4	225.2	630.0	360.1
(29) Turnover Extraction [(22)-(23)] Used for: Home purchase (repeat buyers & investors; new & existing)	114.8	90.8	81.2	91.1	74.3	108.6	101.1	132.3	184.8	211.0	227.0	274.2	365.9	407.5	533.3	401.9	119.0	361.6	199.9
(30) Turnover Extraction [(22)-(23)] Used for: Repayment of non-mortgage debt	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0
(31) Turnover Extraction [(22)-(23)] Used for: PCE	17.6	13.8	12.1	13.5	10.9	15.9	14.7	19.2	26.6	29.3	30.4	35.2	46.3	48.4	62.9	47.4	17.4	44.6	26.5
(32) Turnover Extraction [(22)-(23)] Used for: Investments (excluding homes)	90.7	70.8	62.2	69.2	55.9	81.5	75.0	98.3	135.9	148.8	154.1	177.3	232.9	241.2	313.3	236.1	88.8	223.8	133.8
(33) Memo: PCE plus repayment of non-mortgage debt [(30)+(31)]	17.6	13.8	12.1	13.5	10.9	15.9	14.7	19.2	26.6	29.3	30.4	35.2	46.3	48.4	62.9	47.4	17.4	44.6	26.5
(34) Memo: PCE plus repayment of non-mortgage debt [(30)+(31)] -> Closing costs paid in cash, ex. commissions [(0.0165)*(21)]	7.0	6.6	6.7	7.4	6.9	8.6	8.8	10.8	13.2	14.4	15.6	18.2	22.7	25.9	31.6	27.3	9.1	22.8	13.6
(35) Memo: PCE plus repayment of non-mortgage debt [(30)+(31)] -> Commissions on existing sales [(0.055)*(21)]	23.4	22.1	22.5	24.7	23.1	28.7	29.4	36.1	44.0	48.1	52.1	60.5	75.7	86.5	105.4	91.0	30.2	76.0	45.5
(36) Memo: Total closing costs paid in cash to purch. existing homes [(34)+(35)]	30.4	28.7	29.2	32.1	30.0	37.3	38.2	46.9	57.2	62.6	67.7	78.7	98.4	112.4	137.0	118.3	39.3	98.8	59.1
(37) Memo: Fixed parameters: Commission rate on existing homes 0.0550
(38) Memo: Fixed parameters: Other closing costs paid in cash / home price 0.0165
(39) Memo: Points, share of loan amount (FHFB, new and existing homes)	0.0157	0.0157	0.0122	0.0110	0.0097	0.0096	0.0098	0.0085	0.0073	0.0067	0.0053	0.0046	0.0038	0.0040	0.0038	0.0041	0.0106	0.0043	0.0085
(40) Memo: Points paid [(39)*(22)]	1.1	1.1	0.9	0.9	0.7	0.9	0.9	1.0	1.1	1.0	0.9	0.9	0.9	1.1	1.2	1.2	0.9607	0.9872	0.9695
(41) Memo: Total closing costs paid in cash [(36)+(40)]	34.9	33.0	32.6	35.6	32.9	40.9	41.9	50.9	61.4	66.7	71.2	82.2	102.0	116.7	141.9	122.9	43.1	102.8	63.0
(42) Memo: Value of new home sales (implied)	131.4	125.4	125.7	149.2	132.8	160.8	157.9	173.8	227.1	248.6	256.8	289.0	343.4	403.7	489.0	445.9	163.3	356.4	227.6
(43) Memo: Closing costs and points on new homes	8.3	7.9	7.6	8.9	7.8	9.5	9.3	10.1	13.0	14.1	14.3	16.0	18.8	22.1	26.7	24.4	9.6	19.6	13.0
(44) Memo: Total closing costs on home sales [(43)+(41)}]	43.2	40.9	40.2	44.6	40.7	50.3	51.3	61.0	74.4	80.8	85.5	98.2	120.8	138.8	168.6	147.4	52.7	122.4	76.0

Home Equity Loans
	1991	1992	1993	1994	1995	1996	1997	1998	1999	2000	2001	2002	2003	2004	2005	2006	Average 1991-2000	Average 2001-2005	Average 1991-2005
(45) Level of home equity loans outstanding (FOF)	222.0	217.1	210.4	221.8	237.5	262.6	297.0	309.9	334.3	407.4	445.1	501.1	593.4	778.5	913.8	1,019.2	272.0	646.4	396.8
(46) Level of home equity loans outstanding (FOF) Change	7.3	-4.9	-6.7	11.4	15.7	25.1	34.4	12.9	24.4	73.0	37.8	56.0	92.3	185.2	135.3	105.4	19.3	101.3	46.6
(47) Level of home equity loans outstanding (FOF) + HE debt repayments from other EE [(46)+(14)]<1>	24.1	14.2	14.1	35.5	34.1	52.9	63.3	54.1	79.0	137.0	114.9	135.5	189.7	330.9	325.6	277.1	50.8	219.3	107.0
(48) Level of home equity loans outstanding (FOF) + HE debt repayments from other EE [(46)+(14)]<1> Transactions costs [(57)+(65)]	0.4	0.2	0.2	0.4	0.3	0.4	0.5	0.4	0.5	0.8	0.7	0.9	1.1	1.8	1.7	1.4	0.4	1.2	0.7
(49) Level of home equity loans outstanding (FOF) + HE debt repayments from other EE [(46)+(14)]<1> Repayment of non-mortgage debt [(58)+(66)]	7.3	4.5	5.4	13.9	12.7	18.9	21.9	19.9	27.3	46.3	32.9	33.2	46.8	84.9	90.3	78.2	17.8	57.6	31.1
(50) Level of home equity loans outstanding (FOF) + HE debt repayments from other EE [(46)+(14)]<1> Home improvements [(59)+(67)]	7.1	4.2	4.2	10.5	10.6	17.1	20.4	17.6	25.5	43.7	35.6	41.1	57.1	100.0	98.4	83.6	16.1	66.5	32.9
(51) Level of home equity loans outstanding (FOF) + HE debt repayments from other EE [(46)+(14)]<1> PCE [(60)+(68)]	5.6	3.2	2.6	6.4	6.5	10.6	13.4	10.3	16.8	29.5	30.8	42.1	57.7	96.8	85.8	70.8	10.5	62.6	27.9
(52) Level of home equity loans outstanding (FOF) + HE debt repayments from other EE [(46)+(14)]<1> Real estate and business expenses [(61)+(69)]	3.7	2.1	1.8	4.3	4.0	5.9	7.1	6.0	8.8	16.7	14.8	18.3	27.0	47.4	49.5	43.2	6.0	31.4	14.5
(53) Memo: PCE plus repayment of non-mortgage debt [(49)+(51)]	12.9	7.7	8.0	20.3	19.3	29.4	35.3	30.2	44.1	75.8	63.7	75.3	104.5	181.7	176.1	149.0	28.3	120.2	59.0
(54) Level of closed-end home equity loans (FOF)	110.3	105.7	103.0	111.2	121.2	137.4	156.3	167.9	180.2	216.9	212.4	195.2	190.4	214.7	261.1	302.5	141.0	214.8	165.6
(55) Level of closed-end home equity loans (FOF) Change	-1.5	-4.7	-2.6	8.2	10.0	16.2	18.9	11.6	12.3	36.8	-4.6	-17.2	-4.8	24.3	46.4	41.3	10.5	8.8	10.0
(56) Level of closed-end home equity loans (FOF) + HE repayment from other EE [{(54)/(45)}{t-1}*(14)+(55)]<1>	7.1	4.8	7.5	20.1	19.3	30.7	34.1	33.5	42.1	71.0	35.6	19.0	30.0	67.2	100.6	92.5	27.0	50.5	34.8
(57) Level of closed-end home equity loans (FOF) + HE repayment from other EE [{(54)/(45)}{t-1}(14)+(55)]<1> Transactions costs [(78)(56)]	0.1	0.0	0.1	0.2	0.1	0.2	0.2	0.2	0.2	0.3	0.2	0.1	0.1	0.3	0.4	0.4	0.2	0.2	0.2
(58) Level of closed-end home equity loans (FOF) + HE repayment from other EE [{(54)/(45)}{t-1}(14)+(55)]<1> Repayment of non-mortgage debt [(70){(56)-(57)}]	3.8	2.5	4.0	10.7	9.6	14.1	15.6	15.4	19.4	32.1	15.9	8.4	13.0	29.0	43.0	39.5	12.7	21.9	15.8
(59) Level of closed-end home equity loans (FOF) + HE repayment from other EE [{(54)/(45)}{t-1}(14)+(55)]<1> Home improvements [(71){(56)-(57)}]	2.1	1.4	2.2	6.0	6.1	10.4	11.5	11.4	14.3	23.7	11.8	6.2	9.6	21.4	31.7	29.2	8.9	16.1	11.3
(60) Level of closed-end home equity loans (FOF) + HE repayment from other EE [{(54)/(45)}{t-1}(14)+(55)]<1> PCE [(72){(56)-(57)}]	0.7	0.4	0.7	1.9	1.8	2.8	3.1	3.0	3.8	6.3	3.1	1.7	2.5	5.7	8.5	7.8	2.4	4.3	3.1
(61) Level of closed-end home equity loans (FOF) + HE repayment from other EE [{(54)/(45)}{t-1}(14)+(55)]<1> Real estate and business expenses [(73){(56)-(57)}]	0.5	0.3	0.5	1.4	1.7	3.2	3.6	3.5	4.4	8.5	4.6	2.6	4.8	10.7	17.0	15.7	2.8	8.0	4.5
(62) Level of home equity lines of credit (FOF)	111.7	111.5	107.3	110.6	116.2	125.1	140.7	142.0	154.2	190.4	232.8	305.9	403.0	563.8	652.7	716.8	131.0	431.6	231.2
(63) Level of home equity lines of credit (FOF) Change	8.8	-0.2	-4.1	3.2	5.7	8.9	15.6	1.4	12.1	36.3	42.3	73.2	97.1	160.8	88.8	64.1	8.8	92.5	36.7
(64) Level of home equity lines of credit (FOF) + HE repayment from EE [{(62)/(45)}{t-1}*(10)+(63)]<1>	17.0	9.5	6.6	15.4	14.8	22.2	29.2	20.6	36.8	66.0	79.3	116.5	159.7	263.7	225.1	184.6	23.8	168.9	72.2
(65) Level of home equity lines of credit (FOF) + HE repayment from EE [{(62)/(45)}{t-1}(10)+(63)]<1> Transactions costs [(79)(64)]	0.3	0.1	0.1	0.2	0.2	0.2	0.3	0.2	0.3	0.5	0.6	0.8	1.0	1.5	1.3	1.1	0.2	1.0	0.5
(66) Level of home equity lines of credit (FOF) + HE repayment from EE [{(62)/(45)}{t-1}(10)+(63)]<1> Repayment of non-mortgage debt [(74){(64)-(65)}]	3.5	2.0	1.4	3.2	3.1	4.8	6.3	4.4	8.0	14.2	16.9	24.8	33.8	55.8	47.4	38.6	5.1	35.7	15.3
(67) Level of home equity lines of credit (FOF) + HE repayment from EE [{(62)/(45)}{t-1}(10)+(63)]<1> Home improvements [(75){(64)-(65)}]	5.0	2.8	2.0	4.6	4.5	6.7	8.9	6.3	11.2	20.0	23.9	34.9	47.6	78.6	66.7	54.4	7.2	50.3	21.6
(68) Level of home equity lines of credit (FOF) + HE repayment from EE [{(62)/(45)}{t-1}(10)+(63)]<1> PCE [(76){(64)-(65)}]	5.0	2.8	1.9	4.5	4.8	7.8	10.3	7.3	13.0	23.2	27.7	40.4	55.2	91.1	77.3	63.0	8.0	58.3	24.8
(69) Level of home equity lines of credit (FOF) + HE repayment from EE [{(62)/(45)}{t-1}(10)+(63)]<1> Real estate and business expenses [(77){(64)-(65)}]	3.2	1.8	1.2	2.9	2.3	2.6	3.5	2.5	4.4	8.2	10.2	15.6	22.2	36.7	32.4	27.5	3.2	23.4	10.0

Shares of Closed-end loans used for:
	1991	1992	1993	1994	1995	1996	1997	1998	1999	2000	2001	2002	2003	2004	2005	2006	Average 1991-2000	Average 2001-2005	Average 1991-2005
(70) Repayment of non-mortgage debt	0.5354	0.5354	0.5354	0.5354	0.4988	0.4621	0.4621	0.4621	0.4621	0.4549	0.4497	0.4446	0.4342	0.4342	0.4291	0.4291	0.4944	0.4384	0.4757
(71) Home improvements	0.2992	0.2992	0.2992	0.2992	0.3201	0.3409	0.3409	0.3409	0.3409	0.3356	0.3318	0.3280	0.3203	0.3203	0.3165	0.3165	0.3216	0.3234	0.3222
(72) PCE	0.0945	0.0945	0.0945	0.0945	0.0927	0.0909	0.0909	0.0909	0.0909	0.0895	0.0885	0.0875	0.0854	0.0854	0.0844	0.0844	0.0924	0.0862	0.0903
(73) Real estate and business expenses	0.0709	0.0709	0.0709	0.0709	0.0885	0.1061	0.1061	0.1061	0.1061	0.1200	0.1300	0.1400	0.1600	0.1600	0.1700	0.1700	0.0916	0.1520	0.1117

Shares of lines of credit used for:
	1991	1992	1993	1994	1995	1996	1997	1998	1999	2000	2001	2002	2003	2004	2005	2006	Average 1991-2000	Average 2001-2005	Average 1991-2005
(74) Repayment of non-mortgage debt	0.2123	0.2123	0.2123	0.2123	0.2150	0.2178	0.2178	0.2178	0.2178	0.2166	0.2153	0.2141	0.2129	0.2129	0.2117	0.2105	0.2152	0.2134	0.2146
(75) Home improvements	0.3019	0.3019	0.3019	0.3019	0.3043	0.3067	0.3067	0.3067	0.3067	0.3050	0.3032	0.3015	0.2998	0.2998	0.2981	0.2964	0.3043	0.3005	0.3031
(76) PCE	0.2972	0.2972	0.2972	0.2972	0.3264	0.3556	0.3556	0.3556	0.3556	0.3535	0.3515	0.3495	0.3475	0.3475	0.3455	0.3434	0.3291	0.3483	0.3355
(77) Real estate and business expenses	0.1887	0.1887	0.1887	0.1887	0.1543	0.1200	0.1200	0.1200	0.1200	0.1250	0.1300	0.1350	0.1400	0.1400	0.1450	0.1500	0.1514	0.1380	0.1469
(78) Memo: costs of obtaining HE loans as a share of loan amount - Closed-end	0.0110	0.0101	0.0092	0.0082	0.0073	0.0066	0.0059	0.0052	0.0050	0.0048	0.0046	0.0045	0.0043	0.0041	0.0041	0.0041	0.0073	0.0043	0.0063
(79) Memo: costs of obtaining HE loans as a share of loan amount - HELOCS	0.0169	0.0157	0.0146	0.0134	0.0123	0.0111	0.0099	0.0088	0.0082	0.0077	0.0072	0.0067	0.0062	0.0058	0.0057	0.0057	0.0119	0.0063	0.0100

1. HE repayment from other EE (equity extraction): repayments of home equity loans from the proceeds of home sales or cash our refinancings.

Cash Out Refinancings
	1991	1992	1993	1994	1995	1996	1997	1998	1999	2000	2001	2002	2003	2004	2005	2006	Average 1991-2000	Average 2001-2005	Average 1991-2005
(80) Refinance originations	242.8	601.8	732.9	295.4	181.3	290.5	324.3	864.0	588.2	316.8	1,363.3	1,984.4	3,006.9	1,590.4	1,582.3	1,366.8	443.8	1,905.5	931.0
(81) Repayments resulting from refinancings (first liens)	210.1	549.8	677.4	257.2	156.8	246.8	277.0	775.2	495.4	236.3	1,181.7	1,761.1	2,724.7	1,323.8	1,233.5	1,065.1	388.2	1,645.0	807.1
(82) Repayments resulting from refinancings (first liens): Gross cash out [(80)-(81)]	32.7	52.0	55.4	38.1	24.4	43.7	47.4	88.8	92.9	80.5	181.6	223.3	282.2	266.6	348.8	301.7	55.6	260.5	123.9
(83) Repayments resulting from refinancings (first liens): Closing costs [(94)*(80)]	6.8	16.9	17.9	6.9	4.0	6.4	7.2	18.1	11.7	6.1	24.1	33.7	48.7	26.2	25.7	22.6	10.2	31.7	17.4
(84) Repayments resulting from refinancings (first liens): Home equity loan repayments [(96)*(80)]	8.1	9.8	11.1	13.9	7.7	15.4	14.3	23.7	35.5	41.9	51.5	49.6	60.4	94.6	125.8	105.4	18.1	76.4	37.6
(85) Repayments resulting from refinancings (first liens): Free cash generated by refinancings [(82)-(83)-(84)]	17.8	25.3	26.4	17.4	12.8	21.8	25.9	46.9	45.6	32.6	105.9	140.0	173.2	145.7	197.3	173.7	27.2	152.4	69.0
(86) Used for: Repayment of non-mortgage debt [(0.27)*(85)]	4.8	6.8	7.1	4.7	3.4	5.9	7.0	12.7	12.3	8.8	28.6	37.8	46.8	39.4	53.3	46.9	7.4	41.2	18.6
(87) Used for: Home improvements [(0.34)*(85)]	6.0	8.6	9.0	5.9	4.3	7.4	8.8	16.0	15.5	11.1	36.0	47.6	58.9	49.6	67.1	59.0	9.3	51.8	23.5
(88) Used for: PCE [(0.17)*(85)]	3.0	4.3	4.5	2.9	2.2	3.7	4.4	8.0	7.7	5.5	18.0	23.8	29.4	24.8	33.5	29.5	4.6	25.9	11.7
(89) Used for: Acquisition of assets and other [(90)+(91)]	3.9	5.6	5.8	3.8	2.8	4.8	5.7	10.3	10.0	7.2	23.3	30.8	38.1	32.1	43.4	38.2	6.0	33.5	15.2
(90) Used for: Acquisition of assets and other [(90)+(91)] - Financial assets [(0.075)*(85)]	1.3	1.9	2.0	1.3	1.0	1.6	1.9	3.5	3.4	2.4	7.9	10.5	13.0	10.9	14.8	13.0	2.0	11.4	5.2
(91) Used for: Acquisition of assets and other [(90)+(91)] - Real estate or business investments [(0.145)*(85)]	2.6	3.7	3.8	2.5	1.9	3.2	3.8	6.8	6.6	4.7	15.4	20.3	25.1	21.1	28.6	25.2	4.0	22.1	10.0
(92) Used for: PCE plus repayment of non-mortgage debt [(88)+(86)]	7.8	11.1	11.6	7.6	5.6	9.6	11.4	20.6	20.1	14.3	46.6	61.6	76.2	64.1	86.8	76.4	12.0	67.1	30.3
(93) Memo: Gross cash out share [(82)/(80)]	0.1348	0.0865	0.0756	0.1291	0.1347	0.1503	0.1461	0.1028	0.1579	0.2541	0.1332	0.1125	0.0939	0.1676	0.2205	0.2207	0.1372	0.1455	0.1400
(93) Memo: GCO share, no-cash out loans (inferred from Freddie Mac data)	0.0645	0.0441	0.0417	0.0921	0.0757	0.0793	0.0694	0.0490	0.0932	0.1550	0.0582	0.0470	0.0399	0.0764	0.0954	0.0930	0.0764	0.0634	0.0721
(94) Memo: Fees and points / refinance orig. [(0.0125)+(95)]	0.0282	0.0282	0.0247	0.0235	0.0222	0.0221	0.0223	0.0210	0.0198	0.0192	0.0178	0.0171	0.0163	0.0165	0.0163	0.0166	0.0231	0.0168	0.0210
(95) Memo: Fees and points / refinance orig. [(0.0125)+(95)] - Points (FHFB) [(39)]	0.0157	0.0157	0.0122	0.0110	0.0097	0.0096	0.0098	0.0085	0.0073	0.0067	0.0053	0.0046	0.0038	0.0040	0.0038	0.0041	0.0106	0.0043	0.0085
(96) Memo: Home equity loans paid of at refi. / refi orig. [(93)-(94)]	0.0362	0.0159	0.0169	0.0686	0.0535	0.0572	0.0472	0.0279	0.0734	0.1358	0.0404	0.0299	0.0236	0.0599	0.0792	0.0764	0.0533	0.0466	0.0510
(97) Memo: Free cash as a share of refinance originations [(85)/(80)]	0.0731	0.0421	0.0361	0.0587	0.0704	0.0751	0.0798	0.0543	0.0775	0.1029	0.0777	0.0706	0.0576	0.0916	0.1247	0.1271	0.0670	0.0844	0.0728
(98) Memo: Ratio: Free cash / gross cash out [(85)/(82)]	0.5424	0.4864	0.4770	0.4552	0.5228	0.4997	0.5462	0.5283	0.4908	0.4048	0.5835	0.6270	0.6136	0.5466	0.5656	0.5756	0.4954	0.5873	0.5260

Lines 93 and 93: source Freddie Mac and our estimates

Share of Free Cash Used for
	1998:Q1-1999:Q1	2001:Q1-2002:Q2	Average
(a): Repayment of nonmortgage debt	0.2800	0.2600	0.2700
(b): Home improvements	0.3300	0.3500	0.3400
(c): PCE	0.1800	0.1600	0.1700
(d): Stock market and other investments	0.0200	0.1100	0.0750
(e): Real estate, business investment, or taxes	0.1900	0.1200	0.1450

Gross equity extraction, PCE, and the Savings Rate
	1991	1992	1993	1994	1995	1996	1997	1998	1999	2000	2001	2002	2003	2004	2005	2006	Average 1991-2000	Average 2001-2005	Average 1991-2005
(99) Gross equity extraction [(18)]	116.3	117.7	110.2	106.5	119.9	154.2	172.9	283.0	316.9	303.3	413.7	611.1	656.1	899.3	907.8	646.1	180.1	697.6	352.6
(100) Gross equity extraction [(18)]: Net equity extraction [(1)-(17)]	74.2	67.5	59.5	63.6	82.7	106.4	123.2	213.6	243.2	229.6	317.6	494.3	504.4	754.5	738.5	499.0	126.4	561.9	271.5
(101) Gross equity extraction [(18)]: Net equity extraction [(1)-(17)] As percent of disposable income	1.66	1.42	1.21	1.24	1.53	1.87	2.06	3.34	3.63	3.19	4.24	6.31	6.18	8.69	8.17	5.24	2.12	6.72	3.65
(102) Free cash generated by equity extraction [(1)]	262.2	212.2	193.2	223.4	184.5	277.1	276.0	346.9	467.2	553.4	626.9	756.0	1,000.8	1,165.1	1,423.1	1,126.2	299.6	994.4	531.2
(103) Free cash generated by equity extraction [(1)]: As percent of disposable income	5.87	4.47	3.93	4.34	3.41	4.87	4.61	5.42	6.98	7.69	8.37	9.65	12.26	13.42	15.75	11.83	5.16	11.89	7.40
(104) Disposable income (NSA)	4,464.3	4,751.4	4,911.9	5,151.8	5,408.2	5,688.5	5,988.8	6,395.9	6,695.0	7,194.0	7,486.8	7,830.1	8,162.5	8,681.6	9,036.1	9,523.1	5,665.0	8,239.4	6,523.1
(105) Disposable income (NSA): NIPA personal saving	324.2	366.0	284.0	249.5	250.9	228.4	218.3	276.8	158.6	168.5	132.3	184.7	174.9	174.3	-34.8	-102.1	252.5	126.3	210.4
(106) Disposable income (NSA): NIPA personal saving - NIPA savings rate, percent	7.26	7.70	5.78	4.84	4.64	4.02	3.65	4.33	2.37	2.34	1.77	2.36	2.14	2.01	-0.39	-1.07	4.69	1.58	3.65
(107) PCE financed by Equity Extraction: Direct effects [(9)]	26.3	21.3	19.3	22.8	19.6	30.2	32.4	37.5	51.1	64.3	79.2	101.1	133.4	170.0	182.2	147.7	32.5	133.2	66.1
(108) PCE financed by Equity Extraction: Direct effects [(9)] As a percent of disposable income	0.59	0.45	0.39	0.44	0.36	0.53	0.54	0.59	0.76	0.89	1.06	1.29	1.63	1.96	2.02	1.55	0.56	1.59	0.90
(109) PCE financed by Equity Extraction: Direct effects plus repayment of non-mortgage debt [(12)]	38.4	32.6	31.8	41.4	35.8	55.0	61.4	70.0	90.8	119.4	140.7	172.1	227.0	294.2	325.8	272.8	57.7	231.9	115.8
(110) PCE financed by Equity Extraction: Direct effects plus repayment of non-mortgage debt [(12)] As a percent of disposable income	0.86	0.69	0.65	0.80	0.66	0.97	1.02	1.10	1.36	1.66	1.88	2.20	2.78	3.39	3.61	2.86	0.98	2.77	1.57
(111) NIPA personal saving plus: Direct PCE effect [(105)+(107)]	350.4	387.3	303.3	272.3	270.6	258.6	250.8	314.3	209.7	232.7	211.6	285.8	308.3	344.3	147.3	45.6	285.0	259.5	276.5
(112) NIPA personal saving plus: Direct PCE effect [(105)+(107)] - Repayment of non-mortgage debt [(105)+(109)]	362.5	398.7	315.8	290.9	286.7	283.4	279.7	346.8	249.3	287.9	273.1	356.8	401.8	468.5	290.9	170.7	310.2	358.2	326.2
(113) NIPA personal saving rate plus: Direct PCE effect [100*(111)/(104)]	7.85	8.15	6.17	5.29	5.00	4.55	4.19	4.91	3.13	3.24	2.83	3.65	3.78	3.97	1.63	0.48	5.25	3.17	4.56
(114) NIPA personal saving rate plus: Direct PCE effect [100(111)/(104)] - Repayment of non-mortgage debt [100(112)/(104)]	8.12	8.39	6.43	5.65	5.30	4.98	4.67	5.42	3.72	4.00	3.65	4.56	4.92	5.40	3.22	1.79	5.67	4.35	5.23

Full paper (400K KB PDF) | Data (Excel file 176K KB XLS)

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Last update: Novenber 6, 2007