Recently we saw where HELOC activity hit a 15-year high in 2022 (the highest level since mid-2007), but has since slowed – to a pace with pre-pandemic levels. A recent “Chart of the Week” from the Mortgage Bankers Association breaks down how these HELOC’s were utilized over the past several years. Not surprising, home renovation/remodeling continues to be the primary reason, followed by debt consolidation, emergencies and other big ticket financing. Data was pulled from the MBA’s 2023 Home Equity Lending Study.
Given borrowers’ trillions of untapped equity in real estate, lenders anticipate the home equity market to grow in the near term.