According to data from Equifax, home equity borrowing jumped in 2015.
- Total credit limit of new equity lines opened between January and October 2015 was $121.6 billion, up 19.7% from the prior year
- Total number of new lines originated was 1.17 million, up 11.8%
- 852,000 home equity loans were originated, totaling $21.9 billion, a 24.7% increase in originations
However, by continuing to target refinance business and higher qualifying credit scores, banks didn’t claim their share of this pie. According to the National Mortgage News, banks’ home equity balances dropped 3.2% in 2014 and 5.3% in 2015. During the same time frame, home equity balances at credit unions grew 7.2% and 6.1%, respectively.
Most observers predict that home equity demand will continue to grow in 2016 as borrowers take a home equity loan rather than refinancing an already low first mortgage.
Time to dust off those spring remodeling campaigns!