Record levels of equity are currently held by U.S. homeowners, with recent data showing a reluctance to tap into it due to higher interest rates. However, there has been a shift in this trend.
In the third quarter of this year, mortgage holders accessed $48 billion in home equity, marking the highest volume in two years since the Federal Reserve began raising its benchmark interest rate. While mortgage rates do not directly mirror the Fed’s rate, HELOCs are influenced by it. The Fed’s recent rate cut of half a percentage point in mid-September has had an impact.
Despite these changes, homeowners remain cautious about utilizing their equity.
Collectively, they hold over $17 trillion in total equity, with approximately $11 trillion available for borrowing as long as 20% equity remains in their homes – a requirement set by most lenders. On average, homeowners have $319,000 in equity, of which $207,000 is accessible.
An aerial…
2024-11-04 14:01:54
Article from www.cnbc.com
