Financial Crisis Scars Tie Up $8.1 Trillion in U.S. Home Equity
- Homeowners are favoring cash-out refinancing over Helocs
- Second-lien debt seen as a risky proposition in the pandemic
This article is for subscribers only.
U.S. homeowners spooked by the burgeoning pandemic last spring rushed to tap equity in their properties for a hit of ready cash -- and equally wary banks tightened credit or halted lending in response.
In the past year, monstrous demand for homes amid a scarcity of listings pushed up prices to the point of giving owners more collective equity than they’ve ever had before: $8.1 trillion, according to data provider Black Knight Inc.