Home Equity Lines Are Up As Home Values Increase
Americans are increasingly tapping their home equity to finance purchases. The Consumer Bankers Association has released new data showing that during the second quarter of this year the size of home equity lines and loans increased from the same period earlier.
According to the CBA's survey of 32 lenders, the average size of a new home equity line increased 26% to $69,513 as of June 30, and the average size of new home equity loan commitments jumped 44% to $58,054. The survey was conducted by Benchmark Consulting International for the CBA.
Americans are borrowing more from homes that are also worth more. The survey found that the average appraised value of homes used as collateral climbed 19.7% to $249,598 from one year earlier.