by Calculated Risk on 3/08/2007 03:02:00 PM

The Federal Reserve released the Flow of Funds report today for Q4 2006. The report shows that homeowner mortgage debt increase $148.6 Billion in Q4, 2006, or at an annualized rate of 6.4% (NSA).

This is the slowest percentage increase in homeowner mortgage debt since Q1 2000, and in dollar terms, this is the slowest increase since Q1 2002.

Click on graph for larger image.

This graph shows the annualized percentage increase in homeowner mortgage debt, not seasonally adjusted.

Note from Fed: "Includes loans made under home equity lines of credit and home equity loans secured by junior liens".

The slower increase in mortgage debt is probably caused by both the housing slowdown, and less equity extraction from homes. I'll try to estimate the Mortgage Equity Withdrawal (MEW) for Q4 while we wait for the Fed's calculation.