Homeowners have lost over $1 trillion in equity since May

The historic run-up in home prices during the first two years of the pandemic gave homeowners record amounts of new home equity.

Since May, however, about $1.5 trillion of that has vanished, according to Black Knight, a mortgage software and analytics company. The average borrower has lost $30,000 in equity.

Homeowner equity peaked at $11.5 trillion collectively last May, after home prices jumped 45% since the start of the pandemic.

At the end of September, prices were still up 41%, and equity was still quite strong. Borrowers who bought their homes before the pandemic collectively have $5…