New data released by the Federal Reserve suggests that America is finally coming out of it's housing hangover. Following the bust in 2008 equity and fallen to an all-time low of $6.2 trillion but today, equity as of September stood at $12.4 trillion.
Mark Whitehouse reports on the low equity and many homeowners being under water which led to a spending slowdown, and in turn, tepid consumption growth. Through mortgage defaults and modifications, equity has continued to go up:
If the U.S. had been much more aggressive in reducing mortgage principal, as various economists and Bloomberg View advocated, homeowners could have gotten to this point much earlier. Still, better late than never.
For more information on America getting out of the housing debt hangover, head over to BloombergView: