American Banker: Home Equity Loans Back In Vogue As Cash-Out Refis Fade

American Banker, September 7, 2022, Home Equity Loans Back In Vogue As Cash-Out Refis Fade

Higher interest rates are crushing mortgage refinancing volumes, but homeowners are increasingly turning to second loans and are unlikely to slow down soon.

Lenders originated some $100.8 billion in home equity lines of credit, or HELOCs, through the first five months of the year, up nearly 50% from last year, according to a report from the Urban Institute’s Housing Finance Policy Center. Home equity loan originations saw a slightly smaller jump, totaling $38.1 billion through the end of May.