What makes now the time to get back in the game of home equity loans?

In past years, lenders haven’t always received the best news when surveying the home equity market. This year, when asked if they wanted the good news or bad news first, financial institutions were pleasantly surprised when choosing good news — home equity demand is on the rise.

The demand for loans has increased significantly over the last few years, from a low of 19% in 2015 to 21% just last year. In fact, according to the research study, 28% of consumers in the market today anticipate taking out a loan in the next 12 months.

This increase in demand is being fueled by rising home prices (up by one-third since 2009) and lower inventories of houses on the market.

However, there are still a few factors holding potential borrowers back — including rising interest rates and tax code changes.

 

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