In a reflection of the recovering housing market, consumer demand for home equity lines of credit is surging, according to the Consumer Banker Association’s Home Equity Lending Committee.
As of March 15, HELOC originations have grown 36% over the year prior, the CBA found in market analysis performed in coordination with analytics firm Icon Advisory Group. HELOC applications grew 25% in 2014.
“With recovering home values and improving consumer confidence, we are seeing an increase in demand for HELOCs from qualified borrowers,” said Nancy Elkus, vice president and senior consumer lending product manager at Fifth Third Bank and chair of CBA’s Home Equity Lending Committee, in a news release. The results of the market analysis were first presented at CBA LIVE 2015.
Attractive interest rates have also contributed to the growth in demand, the study found. Borrowers seeking these lines of credit also have an improved profile with […]