Home Prices Are Dropping... And It's Costing Homeowners Equity

The current fluctuating housing market has an impact on all homeowners... even if they're not looking to buy or sell.

House for sale, price reduced. Real estate sign. Front yard.

Photo: Getty Images

Home prices have dropped by 0.77% over the summer, as mortgage rates continue rising. While that has had an obvious impact on people looking to buy or sell a home, it also affects 'tappable equity' -- the amount homeowners can borrow against in a home equity loan.

Tappable equity dropped by 5% in June and July, and by as much as 20% in the hottest real estate markets such as San Diego or Seattle.

“Annual home price appreciation still came in at over 14%, but in a market characterized by as much volatility and rapid change as today’s, such backward-looking metrics can be misleading as they can mask more current, pressing realities,” wrote Ben Graboske, president of Black Knight Data & Analytics.

Have you tried to buy or sell a home in the last year?! Tweet us @ConwayShow about your experience!

Check out more details on CNBC.

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