, Columnist
Americans Have a New Piggy Bank to Raid — Their Houses
Home equity loans are beginning to look more attractive after fading into irrelevance after the financial crisis.
Savings to be spent.
Photographer: Ron Antonelli/Bloomberg
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American consumers have surprised many economists this year by continuing to spend even as their savings shrink and the labor market cools. They’ve been aided in part by pockets of deflation that have boosted their purchasing power on things such as gasoline, automobiles and airfares.
But with the personal saving rate near its lowest level since the mid-2000s, it’s fair to ask whether consumers will keep spending. The slow revival of a long-dormant financial product may offer a partial answer.