In economics, mortgage equity withdrawal (MEW) is the decision of consumers to borrow money against the real value of their houses.
Some authors also use equity extraction and include net payments received at time of house sale.
The rate of MEW has been linked to Marginal propensity to consume (MPC), as measured by Personal Consumption Expenditure (PCE).
In the United States, during the dramatic rise in house prices MEW funded PCE 1.1 to 1.7% from 1991 to 2000, and almost 3% from 2000 to 2005 [1] and was responsible for more than 75% of GDP growth from 2003 to 2006.
As an economic metric, it is very useful to do so; however, this view is a balance sheet phenomenon and not actual conversion of home equity into cash.