"The U.S. is very equity-rich. Seventy percent of borrowers have mortgage rates below 5%, effectively freezing the traditional cash-out refinance market. Borrowers don't want to give up those low rates, so they're looking for other ways to access liquidity."
"U.S. home equity has surpassed a record high of $35 trillion in tappable equity across U.S. households. A significant portion of wealth is tied to housing, with roughly 24M millionaires in the U.S. and an estimated 75% of that wealth built through home equity."
"The typical U.S. home is now 40-50 years old, driving a surge in renovation activity. Industry forecasts call for more than $600 billion in home improvement spending in 2026, as more homeowners plan to stay in place long term."
"Self-employed borrowers are leveraging equity to fund businesses, and investors are using it to expand portfolios without disrupting low-rate first liens. The use cases are broad, reflecting a shift in how borrowers think about liquidity."
Lenders are rethinking growth strategies due to constrained refinance activity and pressure on purchase volume. Home equity is emerging as a vital solution. With 70% of borrowers locked into low mortgage rates, they are exploring second liens and mortgages to access equity. U.S. home equity has reached a record high of $35 trillion, influencing how borrowers approach liquidity. Renovation spending is projected to exceed $600 billion by 2026, driven by aging homes and high consumer debt, as homeowners seek to stay in place long-term.
Read at www.housingwire.com
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