Homeowners Have More Equity Than Ever But Don’t Want to Tap It
- New home equity loans and lines have fallen in recent quarters
- Borrowers have record $5.8 trillion of unmortgaged equity
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Homeowners are sitting on a record amount of equity, but this time they’re stubbornly reluctant to borrow against it.
Strong home price appreciation has handed Americans more than $5.8 trillion of equity they could be tapping and aren’t, more than double the level in 2011, according to data provider Black Knight Inc. At least part of that reluctance stems from rising rates, which means debt carrying adjustable rates will keep growing more expensive.