The number of HELOC of Home Equity Line of Credit loans originated surged 41% from the second quarter of 2021 to the second quarter of this year according to a report from TransUnion. While year-to-year comparisons provide insight the surge in home values that peaked in June for most markets must be considered. Also, interest rates remained at historic lows during the same time period. Earlier this month the average rate for a HELOC jumped up 1.38% from late July due to the Federal Reserve increasing its short-term interest rates.
Despite the headwinds of softening home values and rising rates, several lenders have expanded their product portfolio to include home equity loans according to an August 1st column in Housing Wire. New entrants into the HELOC market include…
