Homeowners are increasingly tapping their equity, according to data from Transunion, more than 330, 000 home equity loans were taken out in the third quarter of last year. That’s about a 47 percent increase from the same quarter in 2021. Years of rising home values have made home equity a tempting option.
Banks also granted over 400,000 home equity lines of credit in the third quarter of 2022, up 41 percent from a year earlier.
The rise in taking out home equity loans is part of a general increase in using credit, as high prices for necessities like food and gas squeeze households.
TransUnion said credit card balances climbed to a record high of $931 billion in the fourth quarter of 2022. That’s a nearly 19 percent increase from a year earlier.
