During the past two years, there were both positive and negative effects on economic activity and prices in addition to QQE – such as measures by the government including large-scale public investment, the consumption tax hike, a surge in stock prices, foreign exchange rate movements, and a significant decline in crude oil prices.
A borrower's equity in his or her home matters most when a property is foreclosed, something that both lenders and borrowers would prefer to avoid. Having equity in a home can provide an added incentive for borrowers to stay current on their loans, of course, especially for second homes and investment properties.