Home Equity Line Of Credit And Home Equity Loans: 'Right Tool At The Right Time' - USA Today
November 11, 2022Home values appreciated during the red-hot pandemic market, boosting equity to $20 trillion, up from $16 trillion in 2021 and $12 trillion in 2012, according to a study by TransUnion.
This is both good and bad for the housing industry, says Jeff Taylor, founder and managing director at MphasisDigital Risk and board member at the Mortgage Bankers Association.
“Homeowners who once considered selling their house and moving up are now firmly entrenched as they don’t want to leave a 3% interest rate for 7%, and are using their equity to put money back into home renovations or additions to give them what they need,” he says. “The good news is that from an origination standpoint, many lenders and banks have been able to quickly make the shift to HELOC products and keep people employed.”
