Graph of the Day: Mortgage Equity Withdrawal, 1991-2009

From Calculated Risk:

Here are the Kennedy-Greenspan estimates (NSA – not seasonally adjusted) of home equity extraction for Q4 2008, 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. For Q4 2008, Dr. Kennedy has calculated Net Equity Extraction as minus $77 billion, or negative 2.9% of Disposable Personal Income (DPI).
This graph shows the net equity extraction, or mortgage equity withdrawal (MEW), results, both in billions of dollars quarterly (not annual rate), and as a percent of personal disposable income. …

Q4 Mortgage Equity Extraction Strongly Negative