Homeowners are sitting on near record-levels of equity according to a new report, gaining an average of 8.1 percent in the last year alone. As a result, homeowners have greater access to ready cash in the form of a home equity line of credit (HELOC).
Equity levels climbed $9,700 in 2018 compared to the year before but California residents saw much higher increases. Property owners in the Golden State saw their home equity levels climb an average of $19,600 last year. Nevada led the nation with gains topping $29,400 on average.
The increases in equity could mean an increased number of home equity loans this year, particuarly as interest rates slide.
Today, conforming no-point 30-year fixed mortgage rates are averaging 4.25 percent, 15-year rates are near 3.75 percent and the 5-year ARM is averaging 4.25 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.