CalculatedRisk Newsletter

CalculatedRisk Newsletter

The Home ATM

aka Mortgage Equity Withdrawal (MEW)

CalculatedRisk by Bill McBride's avatar
CalculatedRisk by Bill McBride
Sep 26, 2021
∙ Paid

During the housing bubble, many homeowners borrowed heavily against their perceived home equity - jokingly calling it the “Home ATM” - and this contributed to the subsequent housing bust, since so many homeowners had negative equity in their homes when house prices declined.

According to the Fed’s Financial Accounts of the United States - Z.1 (sometimes …

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