Homebuyers shopping for a house in the current market can only daydream about the rock-bottom mortgage rates that were available during the peak of the pandemic.
The latest Fannie Mae Home Purchase Sentiment Index reveals that merely 17% of the general public considers it a favorable time to purchase a house. This is likely due to the confluence of rising inflation, slightly decreasing yet still high home prices, and increased mortgage interest rates, which make buying a home appear relatively unaffordable. However, if acquiring a new home is not feasible, why not consider renovating your current one instead?
This abundance of equity, at least partially, appears to be the reasoning behind people using their home equity for financing, i.e., taking out a home equity loan (HEL) against their ownership share. TransUnion’s data shows a 47% rise in the inception of home equity loans and a 41% rise in their relative, home equity line of credit (HELOCs)….