U.S. Mortgage Applications Rise 1.7% as Homeowners Tap $17 Trillion in Equity
Updated
Updated · OCRegister · May 14
U.S. Mortgage Applications Rise 1.7% as Homeowners Tap $17 Trillion in Equity
2 articles · Updated · OCRegister · May 14
A 1.7% weekly increase in mortgage applications points to more homeowners seeking cash-out financing, with renovations and debt consolidation among the main uses.
About $17 trillion in home equity and pandemic-era first mortgages below 5% are steering borrowers toward second liens rather than refinancing into new fixed loans near 6.36%.
HELOC balances already total $446 billion, and these credit lines remain attractive because rates typically run far below credit cards, even though they are adjustable and secured by the home.
The borrowing push comes as Americans are projected to spend $518 billion on home renovations this year while carrying $1.25 trillion in credit card debt, reinforcing demand for equity-based loans.
Americans are tapping trillions in home equity. Are we risking a repeat of the 2008 housing crisis?
Home equity sharing offers cash with no monthly payments. What is the hidden cost compared to a traditional home loan?