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One of the important lessons learned in the great recession is that homeowners would benefit from the ability to build equity in their home faster. Equity helps a borrower to refinance during an economic crisis, to save for a trade‐up purchase, to access a business loan, and to shape one’s retirement.
Furthermore, the market will experience changes in the near future that suggest a need for improved equity growth. Balancing the need for more equity with other consumer priorities like affordability is key.
This piece is intended to raise a discussion about looming changes in the market, the need for financial innovation in products and institutions, and one potential solution, but it is not an official NAR position or endorsement.