Americans have the lowest average equity since the Federal Reserve started keeping track in 1945. The average American now has more debt against their homes than the amount they actually owe. This is an indication that the financial well being of most Americans is not good, as real estate ownership is the #1 source of wealth. It also demonstrates our increased reliance on debt for our "needs" of life. Americans have consistently borrowed against the equity in their homes to purchase luxuries. With home appreciating decreasing, this is greatly reducing wealth, and potential retirement income for many individuals. At the same time the record number of foreclosures doesn't help this stat either as most Foreclosure filers have little or no equity.
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