More Americans Are Tapping Home Equity Credit Lines, NY Fed Says
- Overall consumer delinquency rate was unchanged at 3.2% in Q2
- Mortgage originations fell as fewer bought homes or refinanced
Since late 2021, HELOC balances have rebounded by 20% as people use this source of cash to pay down other debt or meet large expenses.
Photographer: David Ryder/BloombergThis article is for subscribers only.
Americans who want to tap the rising equity of their homes without giving up their low mortgage rates are increasingly turning to home equity lines of credit.
After almost 13 years of declines, balances on home equity lines of credit, known as HELOCs, have begun to rebound, gaining 20% since bottoming out at the end of 2021, according to the Federal Reserve Bank of New York’s Quarterly Report on Household Debt and Credit released Tuesday.