by Calculated Risk on 6/07/2007 02:50:00 PM

Here are the Kennedy-Greenspan estimates of home equity extraction for Q1 2007, provided by Jim Kennedy based on the mortgage system presented in "Estimates of Home Mortgage Originations, Repayments, and Debt On One-to-Four-Family Residences," Alan Greenspan and James Kennedy, Federal Reserve Board FEDS working paper no. 2005-41.

Click on graph for larger image.
For Q1 2007, Dr. Kennedy has calculated Net Equity Extraction as $84.0 Billion, or 3.4% of Disposable Personal Income (DPI). Note that equity extraction for Q4 2006 has been revised upwards to $109.1 Billion.

This graph shows the MEW results, both in billions of dollars quarterly (not annual rate), and as a percent of personal disposable income.