by Calculated Risk on 9/18/2008 03:03:00 PM

The Fed released the Q1 2008 Flow of Funds report today: Flow of Funds.

Household percent equity was at an all time low of 45.2%.

Click on graph for larger image in new window.

This graph shows homeowner percent equity since 1952.

When prices were increasing dramatically in recent years, the percent homeowner equity was declining because homeowners were extracting equity from their homes. Now, with prices falling, the percent homeowner equity is declining even faster.

Note: approximately 31% of households do not have a mortgage. So the 50+ million households with mortgages have far less equity than 45.2%.

The second graph shows household real estate assets and mortgage debt as a percent of GDP. Household assets as a percent of GDP is now declining. Mortgage debt as a percent of GDP has declined for the last two quarters.

More later ...