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Finance and Economics Discussion Series
Finance and Economics Discussion Series logo links to FEDS home page Sources and Uses of Equity Extracted from Homes
Alan Greenspan and James Kennedy
2007`-20

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

 1991199219931994199519961997199819992000200120022003200420052006Average
1991-2006
(1) Value of existing homes sold (implied)425.6401.6408.3449.0419.3521.3533.9655.6800.0875.2946.81,100.61,376.91,572.21,915.61,654.2878.5
(2) Value of existing homes sold (implied) - Sellers' debt cancellation 159.0183.9210.4229.4234.6262.0286.6337.4372.2397.3438.4501.8592.8707.3799.7779.5405.8
(3) Value of existing homes sold (implied) - Closing costs on existing homes paid in cash34.933.032.635.632.940.941.950.961.466.771.282.2102.0116.7141.9122.966.7
(4) Value of existing homes sold (implied) - Home equity loans paid off at the time of sale8.79.39.810.210.812.414.617.419.022.125.629.937.051.164.566.325.5
(5) Net proceeds available to sellers of existing homes [(1)-(2)-(3)-(4)]223.1175.4155.5173.8141.1206.0190.8249.9347.3389.0411.6486.7645.1697.1909.5685.4380.5
(6) Value of existing homes sold by type: Owner-occupied homes [(1-(18))*(1)]395.4373.7379.6415.0385.0477.9485.3596.7722.4785.1844.9969.71,198.11,322.31,601.21,382.8771.0
(7) Value of existing homes sold by type: Owner-occupied homes [(1-(18))*(1)] - Repeat buyers [(19)*(6)]221.4211.2216.4236.5219.4272.4276.6340.1411.8455.4498.5581.8718.9806.6976.8843.5455.5
(8) Value of existing homes sold by type: Owner-occupied homes [(1-(18))*(1)] - Non-repeat buyers [(6)-(7)]174.0162.6163.2178.4165.5205.5208.7256.6310.6329.8346.4387.9479.3515.7624.5539.3315.5
(9) Value of existing homes sold by type: Rental and vacant homes [(18)*(1)]30.227.928.734.034.343.448.558.977.690.1101.8130.9178.8249.9314.4271.5107.6
(10) Sellers' debt cancellation by type: Owner-occupied homes [{(6)/(1)}*(2)]147.7171.1195.6212.0215.4240.1260.5307.0336.1356.5391.2442.1515.8594.9668.5651.6356.6
(11) Sellers' debt cancellation by type: Owner-occupied homes [{(6)/(1)}*(2)] - Repeat buyers [{(7)/(6)}*(10)]82.796.7111.5120.8122.8136.9148.5175.0191.6206.7230.8265.3309.5362.9407.8397.5210.4
(12) Sellers' debt cancellation by type: Owner-occupied homes [{(6)/(1)}*(2)] - Non-repeat buyers [(10)-(11)]65.074.484.191.292.6103.3112.0132.0144.5149.7160.4176.9206.3232.0260.7254.1146.2
(13) Sellers' debt cancellation by type: Rental and vacant homes [(2)-(10)]11.312.814.817.419.221.926.130.436.140.847.259.777.0112.4131.2127.949.1
(14) Decomposition of the net proceeds available to sellers of existing homes: Owner-occupied homes [(6)-(10)-{(6)/(1)}*{(3)+(4)}]207.2163.2144.6160.7129.6188.9173.5227.5313.6348.9367.3428.8561.4586.3760.3572.9333.4
(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)]116.192.282.491.673.8107.798.9129.7178.8202.4216.7257.3336.9357.6463.8349.5197.2
(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)]91.271.062.269.155.781.274.697.8134.8146.6150.6171.5224.6228.7296.5223.4136.2
(17) Decomposition of the net proceeds available to sellers of existing homes: Rental and Vacant [(5)-(14)]15.912.210.913.111.517.117.322.433.740.144.257.983.7110.8149.3112.547.0
(18) Memo: Rental/vacant share of the value of homes purchased0.07160.06960.07070.07610.08250.08390.09130.09030.09740.10330.10790.11890.13030.15990.16410.16410.1051
(19) Memo: Repeat buyers' share of home purchases (AHS & Chicago Title)0.56000.56500.57000.57000.57000.57000.57000.57000.57000.58000.59000.60000.60000.61000.61000.61000.5822

Distribution of the Net Proceeds from Existing Home Sales
 Fixed share:1991199219931994199519961997199819992000200120022003200420052006Average
1991-2006
(20) Repeat buyers [(15)] 116.192.282.491.673.8107.798.9129.7178.8202.4216.7257.3336.9357.6463.8349.5197.2
(21) Repeat buyers [(15)] - Cash used to purchase a home [0.87*(20)]0.870101.080.271.779.764.293.786.0112.8155.5176.1188.6223.8293.1311.1403.5304.1171.6
(22) Repeat buyers [(15)] - PCE [0.03*(20)]0.0303.52.82.52.72.23.23.03.95.46.16.57.710.110.713.910.55.9
(23) Repeat buyers [(15)] - Financial investments and other [0.1*(20)]0.10011.69.28.29.27.410.89.913.017.920.221.725.733.735.846.434.919.7
(24) Non-repeat buyers [(16)] 91.271.062.269.155.781.274.697.8134.8146.6150.6171.5224.6228.7296.5223.4136.2
(25) Non-repeat buyers [(16)] - PCE [0.15*(24)]0.15013.710.69.310.48.412.211.214.720.222.022.625.733.734.344.533.520.4
(26) Non-repeat buyers [(16)] - Financial investments and other [0.85*(24)]0.85077.560.352.958.747.469.163.483.1114.6124.6128.0145.8190.9194.4252.0189.9115.8
(27) Rental and vacant homes [(17)] 15.912.210.913.111.517.117.322.433.740.144.257.983.7110.8149.3112.547.0
(28) Rental and vacant homes [(17)] - Cash used to purchase a home [0.87*(27)]0.87013.810.69.511.410.014.915.119.529.334.938.550.472.896.4129.997.940.9
(29) Rental and vacant homes [(17)] - PCE [0.03*(27)]0.0300.50.40.30.40.30.50.50.71.01.21.31.72.53.34.53.41.4
(30) Rental and vacant homes [(17)] - Financial investments and other [0.1*(27)]0.1001.61.21.11.31.21.71.72.23.44.04.45.88.411.114.911.24.7
(31) Total [(5)] 223.1175.4155.5173.8141.1206.0190.8249.9347.3389.0411.6486.7645.1697.1909.5685.4380.5
(32) Total [(5)]: Cash used to purchase a home [(21)+(28)] 114.890.881.291.174.3108.6101.1132.3184.8211.0227.0274.2365.9407.5533.3401.9212.5
(33) Total [(5)]: PCE [(22)+(25)+(29)] 17.613.812.113.510.915.914.719.226.629.330.435.246.348.462.947.427.8
(34) Total [(5)]: Financial investments and other [(23)+(26)+(30)] 90.770.862.269.255.981.575.098.3135.9148.8154.1177.3232.9241.2313.3236.1140.2

Distribution of Equity Extraction to Consumer Spending, Home improvements, Investments, and Debt Repayment
 1991199219931994199519961997199819992000200120022003200420052006Average
1991-2000
Average
2001-2005
Average
1991-2005
(1) Free cash resulting from equity extraction [(2)+(3)+(4)]:262.2212.2193.2223.4184.5277.1276.0346.9467.2553.4626.9756.01,000.81,165.11,423.11,126.2299.6994.4531.2
(2) Free cash resulting from equity extraction [(2)+(3)+(4)]: Home sales [(28)]223.1175.4155.5173.8141.1206.0190.8249.9347.3389.0411.6486.7645.1697.1909.5685.4225.2630.0360.1
(3) Free cash resulting from equity extraction [(2)+(3)+(4)]: Home equity loans net of unscheduled payments [(47)-(48)-(16)]21.311.411.232.230.749.259.450.174.4131.8109.4129.3182.5322.3316.2267.147.2211.9102.1
(4) Free cash resulting from equity extraction [(2)+(3)+(4)]: Cash out refinancings [(85)]17.825.326.417.412.821.825.946.945.632.6105.9140.0173.2145.7197.3173.727.2152.469.0
(5) Used For: Repayment of non-mortgage debt [(30)+(49)+(86)]12.111.312.518.616.124.828.932.539.655.161.571.093.5124.2143.6125.125.298.849.7
(6) Used For: Repayment of non-mortgage debt [(30)+(49)+(86)] - As a share of consumer credit debt outstanding, beg. of year0.01470.01390.01520.02100.01580.02120.02270.02420.02750.03540.03520.03740.04650.05870.06430.05640.02120.04840.0302
(7) Used For: Home improvements [(50)+(87)]13.212.813.216.414.924.529.233.641.054.871.688.7116.0149.6165.5142.625.4118.356.3
(8) Used For: Home improvements [(50)+(87)] - As a share of outlays for residential improvements (NIPA) 0.23180.22030.19490.21420.18680.29590.32850.36590.43150.53270.65480.76690.92321.08401.08600.91290.30020.90300.4113
(9) Used For: Personal consumption expenditures [(31)+(51)+(88)]26.321.319.322.819.630.232.437.551.164.379.2101.1133.4170.0182.2147.732.5133.266.1
(10) Used For: Personal consumption expenditures [(31)+(51)+(88)] - As a share of total PCE0.00660.00500.00430.00480.00390.00570.00580.00640.00810.00950.01120.01380.01730.02070.02080.01590.00600.01680.0096
(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)]38.432.631.841.435.855.061.470.090.8119.4140.7172.1227.0294.2325.8272.857.7231.9115.8
(13) Memo: PCE plus non-mortgage debt repayment [(5)+(9)] - As a share of total PCE0.00960.00770.00710.00870.00720.01050.01110.01190.01450.01770.01990.02340.02950.03580.03730.02940.01060.02920.0168
(14) Memo: HE debt repayment resulting from home sales and refis [(27)+(84)]16.819.120.824.118.427.828.941.254.664.077.179.597.4145.7190.3171.731.6118.060.4
(15) Memo: HE debt repayment resulting from home sales and refis [(27)+(84)] - As a share of HE debt outstanding, end of previous year0.07820.08610.09600.11440.08310.11710.10990.13870.17600.19140.18930.17860.19440.24560.24450.18790.11910.21050.1496
(16) Memo: Unscheduled regular mortgage payments2.42.62.72.93.13.23.43.74.14.44.85.36.16.87.78.63.36.14.2
(17) Memo: Closing costs on existing home sales, refinancings, and home equity loans [(26)+(48)+(83)]42.150.150.742.937.147.749.669.473.773.796.1116.8151.7144.7169.3147.053.7135.781.0
(18) Memo: Gross equity extraction116.3117.7110.2106.5119.9154.2172.9283.0316.9303.3413.7611.1656.1899.3907.8646.1180.1697.6352.6
(19) Memo: Turnover extraction + change in home equity loans outstanding net of unscheduled payments + gross cash out [(24)+(46)+(82)-(16)]161.4133.2117.4137.8103.1177.4176.3232.8320.5377.6442.5529.9692.0803.7971.9769.5193.7688.0358.5
(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)]45.115.57.231.3-16.823.33.4-50.33.674.328.8-81.235.9-95.564.1123.513.7-9.65.9

Equity Extracted Through Home Sales.
 1991199219931994199519961997199819992000200120022003200420052006Average
1991-2000
Average
2001-2005
Average
1991-2005
(21) Value of existing home sales (implied)425.6401.6408.3449.0419.3521.3533.9655.6800.0875.2946.81,100.61,376.91,572.21,915.61,654.2549.01,382.4826.8
(22) Value of existing home sales (implied): Existing home extensions282.8272.5281.8320.6300.7373.9384.5472.0579.5625.8666.3757.8916.31,066.11,295.21,150.6389.4940.3573.1
(23) Value of existing home sales (implied): Sellers' debt cancellation159.0183.9210.4229.4234.6262.0286.6337.4372.2397.3438.4501.8592.8707.3799.7779.5267.3608.0380.9
(24) Turnover Extraction [(22)-(23)]123.888.671.591.266.1111.997.9134.7207.3228.5227.9255.9323.5358.7495.5371.0122.1332.3192.2
(25) Turnover Extraction [(22)-(23)] + Cash used to purchase existing homes142.9129.1126.5128.4118.6147.4149.4183.5220.4249.4280.4342.8460.6506.1620.4503.7159.6442.1253.7
(26) Turnover Extraction [(22)-(23)] - Total closing costs paid in cash [(41)]34.933.032.635.632.940.941.950.961.466.771.282.2102.0116.7141.9122.943.1102.863.0
(27) Turnover Extraction [(22)-(23)] - Home equity loans paid off at time of sale8.79.39.810.210.812.414.617.419.022.125.629.937.051.164.566.313.441.622.8
(28) Turnover Extraction [(22)-(23)] = Net proceeds available to sellers of existing homes223.1175.4155.5173.8141.1206.0190.8249.9347.3389.0411.6486.7645.1697.1909.5685.4225.2630.0360.1
(29) Turnover Extraction [(22)-(23)] Used for: Home purchase (repeat buyers & investors; new & existing)114.890.881.291.174.3108.6101.1132.3184.8211.0227.0274.2365.9407.5533.3401.9119.0361.6199.9
(30) Turnover Extraction [(22)-(23)] Used for: Repayment of non-mortgage debt 0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0
(31) Turnover Extraction [(22)-(23)] Used for: PCE17.613.812.113.510.915.914.719.226.629.330.435.246.348.462.947.417.444.626.5
(32) Turnover Extraction [(22)-(23)] Used for: Investments (excluding homes)90.770.862.269.255.981.575.098.3135.9148.8154.1177.3232.9241.2313.3236.188.8223.8133.8
(33) Memo: PCE plus repayment of non-mortgage debt [(30)+(31)]17.613.812.113.510.915.914.719.226.629.330.435.246.348.462.947.417.444.626.5
(34) Memo: PCE plus repayment of non-mortgage debt [(30)+(31)] -> Closing costs paid in cash, ex. commissions [(0.0165)*(21)]7.06.66.77.46.98.68.810.813.214.415.618.222.725.931.627.39.122.813.6
(35) Memo: PCE plus repayment of non-mortgage debt [(30)+(31)] -> Commissions on existing sales [(0.055)*(21)]23.422.122.524.723.128.729.436.144.048.152.160.575.786.5105.491.030.276.045.5
(36) Memo: Total closing costs paid in cash to purch. existing homes [(34)+(35)]30.428.729.232.130.037.338.246.957.262.667.778.798.4112.4137.0118.339.398.859.1
(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)0.01570.01570.01220.01100.00970.00960.00980.00850.00730.00670.00530.00460.00380.00400.00380.00410.01060.00430.0085
(40) Memo: Points paid [(39)*(22)]1.11.10.90.90.70.90.91.01.11.00.90.90.91.11.21.20.96070.98720.9695
(41) Memo: Total closing costs paid in cash [(36)+(40)]34.933.032.635.632.940.941.950.961.466.771.282.2102.0116.7141.9122.943.1102.863.0
(42) Memo: Value of new home sales (implied)131.4125.4125.7149.2132.8160.8157.9173.8227.1248.6256.8289.0343.4403.7489.0445.9163.3356.4227.6
(43) Memo: Closing costs and points on new homes8.37.97.68.97.89.59.310.113.014.114.316.018.822.126.724.49.619.613.0
(44) Memo: Total closing costs on home sales [(43)+(41)}]43.240.940.244.640.750.351.361.074.480.885.598.2120.8138.8168.6147.452.7122.476.0

Home Equity Loans
 1991199219931994199519961997199819992000200120022003200420052006Average
1991-2000
Average
2001-2005
Average
1991-2005
(45) Level of home equity loans outstanding (FOF)222.0217.1210.4221.8237.5262.6297.0309.9334.3407.4445.1501.1593.4778.5913.81,019.2272.0646.4396.8
(46) Level of home equity loans outstanding (FOF) Change7.3-4.9-6.711.415.725.134.412.924.473.037.856.092.3185.2135.3105.419.3101.346.6
(47) Level of home equity loans outstanding (FOF) + HE debt repayments from other EE [(46)+(14)]<1>24.114.214.135.534.152.963.354.179.0137.0114.9135.5189.7330.9325.6277.150.8219.3107.0
(48) Level of home equity loans outstanding (FOF) + HE debt repayments from other EE [(46)+(14)]<1> Transactions costs [(57)+(65)]0.40.20.20.40.30.40.50.40.50.80.70.91.11.81.71.40.41.20.7
(49) Level of home equity loans outstanding (FOF) + HE debt repayments from other EE [(46)+(14)]<1> Repayment of non-mortgage debt [(58)+(66)]7.34.55.413.912.718.921.919.927.346.332.933.246.884.990.378.217.857.631.1
(50) Level of home equity loans outstanding (FOF) + HE debt repayments from other EE [(46)+(14)]<1> Home improvements [(59)+(67)]7.14.24.210.510.617.120.417.625.543.735.641.157.1100.098.483.616.166.532.9
(51) Level of home equity loans outstanding (FOF) + HE debt repayments from other EE [(46)+(14)]<1> PCE [(60)+(68)]5.63.22.66.46.510.613.410.316.829.530.842.157.796.885.870.810.562.627.9
(52) Level of home equity loans outstanding (FOF) + HE debt repayments from other EE [(46)+(14)]<1> Real estate and business expenses [(61)+(69)]3.72.11.84.34.05.97.16.08.816.714.818.327.047.449.543.26.031.414.5
(53) Memo: PCE plus repayment of non-mortgage debt [(49)+(51)]12.97.78.020.319.329.435.330.244.175.863.775.3104.5181.7176.1149.028.3120.259.0
(54) Level of closed-end home equity loans (FOF)110.3105.7103.0111.2121.2137.4156.3167.9180.2216.9212.4195.2190.4214.7261.1302.5141.0214.8165.6
(55) Level of closed-end home equity loans (FOF) Change-1.5-4.7-2.68.210.016.218.911.612.336.8-4.6-17.2-4.824.346.441.310.58.810.0
(56) Level of closed-end home equity loans (FOF) + HE repayment from other EE [{(54)/(45)}{t-1}*(14)+(55)]<1>7.14.87.520.119.330.734.133.542.171.035.619.030.067.2100.692.527.050.534.8
(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)]0.10.00.10.20.10.20.20.20.20.30.20.10.10.30.40.40.20.20.2
(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)}]3.82.54.010.79.614.115.615.419.432.115.98.413.029.043.039.512.721.915.8
(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)}]2.11.42.26.06.110.411.511.414.323.711.86.29.621.431.729.28.916.111.3
(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)}]0.70.40.71.91.82.83.13.03.86.33.11.72.55.78.57.82.44.33.1
(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)}]0.50.30.51.41.73.23.63.54.48.54.62.64.810.717.015.72.88.04.5
(62) Level of home equity lines of credit (FOF)111.7111.5107.3110.6116.2125.1140.7142.0154.2190.4232.8305.9403.0563.8652.7716.8131.0431.6231.2
(63) Level of home equity lines of credit (FOF) Change8.8-0.2-4.13.25.78.915.61.412.136.342.373.297.1160.888.864.18.892.536.7
(64) Level of home equity lines of credit (FOF) + HE repayment from EE [{(62)/(45)}{t-1}*(10)+(63)]<1>17.09.56.615.414.822.229.220.636.866.079.3116.5159.7263.7225.1184.623.8168.972.2
(65) Level of home equity lines of credit (FOF) + HE repayment from EE [{(62)/(45)}{t-1}*(10)+(63)]<1> Transactions costs [(79)*(64)]0.30.10.10.20.20.20.30.20.30.50.60.81.01.51.31.10.21.00.5
(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)}]3.52.01.43.23.14.86.34.48.014.216.924.833.855.847.438.65.135.715.3
(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)}]5.02.82.04.64.56.78.96.311.220.023.934.947.678.666.754.47.250.321.6
(68) Level of home equity lines of credit (FOF) + HE repayment from EE [{(62)/(45)}{t-1}*(10)+(63)]<1> PCE [(76)*{(64)-(65)}]5.02.81.94.54.87.810.37.313.023.227.740.455.291.177.363.08.058.324.8
(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)}]3.21.81.22.92.32.63.52.54.48.210.215.622.236.732.427.53.223.410.0

Shares of Closed-end loans used for:
 1991199219931994199519961997199819992000200120022003200420052006Average
1991-2000
Average
2001-2005
Average
1991-2005
(70) Repayment of non-mortgage debt0.53540.53540.53540.53540.49880.46210.46210.46210.46210.45490.44970.44460.43420.43420.42910.42910.49440.43840.4757
(71) Home improvements 0.29920.29920.29920.29920.32010.34090.34090.34090.34090.33560.33180.32800.32030.32030.31650.31650.32160.32340.3222
(72) PCE0.09450.09450.09450.09450.09270.09090.09090.09090.09090.08950.08850.08750.08540.08540.08440.08440.09240.08620.0903
(73) Real estate and business expenses0.07090.07090.07090.07090.08850.10610.10610.10610.10610.12000.13000.14000.16000.16000.17000.17000.09160.15200.1117

Shares of lines of credit used for:
 1991199219931994199519961997199819992000200120022003200420052006Average
1991-2000
Average
2001-2005
Average
1991-2005
(74) Repayment of non-mortgage debt0.21230.21230.21230.21230.21500.21780.21780.21780.21780.21660.21530.21410.21290.21290.21170.21050.21520.21340.2146
(75) Home improvements 0.30190.30190.30190.30190.30430.30670.30670.30670.30670.30500.30320.30150.29980.29980.29810.29640.30430.30050.3031
(76) PCE0.29720.29720.29720.29720.32640.35560.35560.35560.35560.35350.35150.34950.34750.34750.34550.34340.32910.34830.3355
(77) Real estate and business expenses0.18870.18870.18870.18870.15430.12000.12000.12000.12000.12500.13000.13500.14000.14000.14500.15000.15140.13800.1469
(78) Memo: costs of obtaining HE loans as a share of loan amount - Closed-end0.01100.01010.00920.00820.00730.00660.00590.00520.00500.00480.00460.00450.00430.00410.00410.00410.00730.00430.0063
(79) Memo: costs of obtaining HE loans as a share of loan amount - HELOCS0.01690.01570.01460.01340.01230.01110.00990.00880.00820.00770.00720.00670.00620.00580.00570.00570.01190.00630.0100

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
 1991199219931994199519961997199819992000200120022003200420052006Average
1991-2000
Average
2001-2005
Average
1991-2005
(80) Refinance originations242.8601.8732.9295.4181.3290.5324.3864.0588.2316.81,363.31,984.43,006.91,590.41,582.31,366.8443.81,905.5931.0
(81) Repayments resulting from refinancings (first liens)210.1549.8677.4257.2156.8246.8277.0775.2495.4236.31,181.71,761.12,724.71,323.81,233.51,065.1388.21,645.0807.1
(82) Repayments resulting from refinancings (first liens): Gross cash out [(80)-(81)]32.752.055.438.124.443.747.488.892.980.5181.6223.3282.2266.6348.8301.755.6260.5123.9
(83) Repayments resulting from refinancings (first liens): Closing costs [(94)*(80)]6.816.917.96.94.06.47.218.111.76.124.133.748.726.225.722.610.231.717.4
(84) Repayments resulting from refinancings (first liens): Home equity loan repayments [(96)*(80)]8.19.811.113.97.715.414.323.735.541.951.549.660.494.6125.8105.418.176.437.6
(85) Repayments resulting from refinancings (first liens): Free cash generated by refinancings [(82)-(83)-(84)]17.825.326.417.412.821.825.946.945.632.6105.9140.0173.2145.7197.3173.727.2152.469.0
(86) Used for: Repayment of non-mortgage debt [(0.27)*(85)]4.86.87.14.73.45.97.012.712.38.828.637.846.839.453.346.97.441.218.6
(87) Used for: Home improvements [(0.34)*(85)]6.08.69.05.94.37.48.816.015.511.136.047.658.949.667.159.09.351.823.5
(88) Used for: PCE [(0.17)*(85)]3.04.34.52.92.23.74.48.07.75.518.023.829.424.833.529.54.625.911.7
(89) Used for: Acquisition of assets and other [(90)+(91)]3.95.65.83.82.84.85.710.310.07.223.330.838.132.143.438.26.033.515.2
(90) Used for: Acquisition of assets and other [(90)+(91)] - Financial assets [(0.075)*(85)]1.31.92.01.31.01.61.93.53.42.47.910.513.010.914.813.02.011.45.2
(91) Used for: Acquisition of assets and other [(90)+(91)] - Real estate or business investments [(0.145)*(85)]2.63.73.82.51.93.23.86.86.64.715.420.325.121.128.625.24.022.110.0
(92) Used for: PCE plus repayment of non-mortgage debt [(88)+(86)]7.811.111.67.65.69.611.420.620.114.346.661.676.264.186.876.412.067.130.3
(93) Memo: Gross cash out share [(82)/(80)]0.13480.08650.07560.12910.13470.15030.14610.10280.15790.25410.13320.11250.09390.16760.22050.22070.13720.14550.1400
(93) Memo: GCO share, no-cash out loans (inferred from Freddie Mac data)0.06450.04410.04170.09210.07570.07930.06940.04900.09320.15500.05820.04700.03990.07640.09540.09300.07640.06340.0721
(94) Memo: Fees and points / refinance orig. [(0.0125)+(95)]0.02820.02820.02470.02350.02220.02210.02230.02100.01980.01920.01780.01710.01630.01650.01630.01660.02310.01680.0210
(95) Memo: Fees and points / refinance orig. [(0.0125)+(95)] - Points (FHFB) [(39)]0.01570.01570.01220.01100.00970.00960.00980.00850.00730.00670.00530.00460.00380.00400.00380.00410.01060.00430.0085
(96) Memo: Home equity loans paid of at refi. / refi orig. [(93)-(94)]0.03620.01590.01690.06860.05350.05720.04720.02790.07340.13580.04040.02990.02360.05990.07920.07640.05330.04660.0510
(97) Memo: Free cash as a share of refinance originations [(85)/(80)]0.07310.04210.03610.05870.07040.07510.07980.05430.07750.10290.07770.07060.05760.09160.12470.12710.06700.08440.0728
(98) Memo: Ratio: Free cash / gross cash out [(85)/(82)]0.54240.48640.47700.45520.52280.49970.54620.52830.49080.40480.58350.62700.61360.54660.56560.57560.49540.58730.5260

Lines 93 and 93: source Freddie Mac and our estimates

Share of Free Cash Used for
 1998:Q1-1999:Q12001:Q1-2002:Q2Average
(a): Repayment of nonmortgage debt0.28000.26000.2700
(b): Home improvements0.33000.35000.3400
(c): PCE0.18000.16000.1700
(d): Stock market and other investments0.02000.11000.0750
(e): Real estate, business investment, or taxes0.19000.12000.1450

Gross equity extraction, PCE, and the Savings Rate
 1991199219931994199519961997199819992000200120022003200420052006Average
1991-2000
Average
2001-2005
Average
1991-2005
(99) Gross equity extraction [(18)]116.3117.7110.2106.5119.9154.2172.9283.0316.9303.3413.7611.1656.1899.3907.8646.1180.1697.6352.6
(100) Gross equity extraction [(18)]: Net equity extraction [(1)-(17)]74.267.559.563.682.7106.4123.2213.6243.2229.6317.6494.3504.4754.5738.5499.0126.4561.9271.5
(101) Gross equity extraction [(18)]: Net equity extraction [(1)-(17)] As percent of disposable income1.661.421.211.241.531.872.063.343.633.194.246.316.188.698.175.242.126.723.65
(102) Free cash generated by equity extraction [(1)]262.2212.2193.2223.4184.5277.1276.0346.9467.2553.4626.9756.01,000.81,165.11,423.11,126.2299.6994.4531.2
(103) Free cash generated by equity extraction [(1)]: As percent of disposable income5.874.473.934.343.414.874.615.426.987.698.379.6512.2613.4215.7511.835.1611.897.40
(104) Disposable income (NSA)4,464.34,751.44,911.95,151.85,408.25,688.55,988.86,395.96,695.07,194.07,486.87,830.18,162.58,681.69,036.19,523.15,665.08,239.46,523.1
(105) Disposable income (NSA): NIPA personal saving324.2366.0284.0249.5250.9228.4218.3276.8158.6168.5132.3184.7174.9174.3-34.8-102.1252.5126.3210.4
(106) Disposable income (NSA): NIPA personal saving - NIPA savings rate, percent7.267.705.784.844.644.023.654.332.372.341.772.362.142.01-0.39-1.074.691.583.65
(107) PCE financed by Equity Extraction: Direct effects [(9)]26.321.319.322.819.630.232.437.551.164.379.2101.1133.4170.0182.2147.732.5133.266.1
(108) PCE financed by Equity Extraction: Direct effects [(9)] As a percent of disposable income0.590.450.390.440.360.530.540.590.760.891.061.291.631.962.021.550.561.590.90
(109) PCE financed by Equity Extraction: Direct effects plus repayment of non-mortgage debt [(12)]38.432.631.841.435.855.061.470.090.8119.4140.7172.1227.0294.2325.8272.857.7231.9115.8
(110) PCE financed by Equity Extraction: Direct effects plus repayment of non-mortgage debt [(12)] As a percent of disposable income0.860.690.650.800.660.971.021.101.361.661.882.202.783.393.612.860.982.771.57
(111) NIPA personal saving plus: Direct PCE effect [(105)+(107)]350.4387.3303.3272.3270.6258.6250.8314.3209.7232.7211.6285.8308.3344.3147.345.6285.0259.5276.5
(112) NIPA personal saving plus: Direct PCE effect [(105)+(107)] - Repayment of non-mortgage debt [(105)+(109)]362.5398.7315.8290.9286.7283.4279.7346.8249.3287.9273.1356.8401.8468.5290.9170.7310.2358.2326.2
(113) NIPA personal saving rate plus: Direct PCE effect [100*(111)/(104)]7.858.156.175.295.004.554.194.913.133.242.833.653.783.971.630.485.253.174.56
(114) NIPA personal saving rate plus: Direct PCE effect [100*(111)/(104)] - Repayment of non-mortgage debt [100*(112)/(104)]8.128.396.435.655.304.984.675.423.724.003.654.564.925.403.221.795.674.355.23

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