Homeowners Boost HELOC Borrowing for 17 Straight Quarters as Rates Sit at 7.44%

1 articles · Updated · Marketplace · Aug 11

HELOC balances rose for a 17th consecutive quarter even as overall household debt fell in the second quarter, marking home-equity credit as a standout borrowing category.
A 7.44% average HELOC rate is driving that demand because it undercuts credit cards at just under 20% and personal loans above 12%, making equity a cheaper source of cash.
Homeowners are tapping those lines for renovations, education and other large expenses, helped by more than $210,000 in average tappable equity and many first mortgages still below 3.5%.
Lenders say HELOC users typically have strong credit scores in the 760-780 range, but analysts warn that being house-rich and cash-poor can turn risky if rates rise or the economy weakens.