Sources and Uses of Equity Extracted from Homes

49 Pages Posted: 12 Jul 2007

See all articles by Alan Greenspan

Alan Greenspan

Board of Governors of the Federal Reserve System

James E. Kennedy

Board of Governors of the Federal Reserve System

Date Written: March 2007

Abstract

In this paper, we present estimates of the disposition of the free cash generated by home equity extraction to finance consumer spending, outlays for home improvements, debt repayment, acquisition of assets, and other uses. We estimate free cash as cash available net of closing costs and repayment of other mortgage debt. We also have extended the quarterly data series for gross equity extraction, presented in our earlier paper, back to 1968.

Keywords: macroeconomics, personal consumption, home equity extraction

JEL Classification: E21, G21

Suggested Citation

Greenspan, Alan and Kennedy, James E., Sources and Uses of Equity Extracted from Homes (March 2007). FEDS Working Paper No. 2007-20, Available at SSRN: https://ssrn.com/abstract=999578 or http://dx.doi.org/10.2139/ssrn.999578

Alan Greenspan

Board of Governors of the Federal Reserve System

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James E. Kennedy (Contact Author)

Board of Governors of the Federal Reserve System ( email )

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