The “Residence ATM” Largely Closed in Q3

by Calculated Danger on 1/09/2026 02:15:00 PM

At this time, within the Calculated Danger Actual Property E-newsletter: The “Residence ATM” Largely Closed in Q3

A short excerpt:

Throughout the housing bubble, many householders borrowed closely towards their perceived house fairness – jokingly calling it the “Residence ATM” – and this contributed to the following housing bust, since so many householders had destructive fairness of their houses when home costs declined.
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Right here is the quarterly enhance in mortgage debt from the Federal Reserve’s Monetary Accounts of the US – Z.1 (generally known as the Circulation of Funds report) launched at present. Within the mid ‘00s, there was a big enhance in mortgage debt related to the housing bubble.

In Q3 2025, mortgage debt elevated $108 billion, unchanged from $108 billion in Q2. Notice the just about 7 years of declining mortgage debt as distressed gross sales (foreclosures and quick gross sales) worn out a major quantity of debt.

Nevertheless, a few of this debt is getting used to extend the housing inventory (buy new houses), so this isn’t all Mortgage Fairness Withdrawal (MEW).