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Demand for HELOCs Collapses to 15-Year Low

Scorpio

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#1
Demand for HELOCs Collapses to 15-Year Low
by Wolf Richter • Mar 11, 2019 • 97 Comments • Email to a friend

American homeowners have learned a lesson, despite what banks and the Fed want them to do.
When you google “HELOC” the first batch of entries that come up are ads trying to get you to take out a HELOC. The most aggressive advertisers that outbid all others in my sample of one were: Lending Tree, the “home equity” division of J.P. Morgan Chase, and Quicken Loans. Then it’s lender after lender offering enticing terms. It’s not like HELOCs – home equity lines of credit – are playing hard to get or anything. But demand has collapsed.
At the end of February, outstanding HELOC balances at all commercial banks in the US fell to $346 billion, according to the Federal Reserve Board of Governors. They’re down 43% from the peak in April 2009 – and now back where they’d been in July 2004 on the way up. This marks a decline that has now lasted 10 years:


more here:
https://wolfstreet.com/2019/03/11/demand-for-helocs-collapses-to-15-year-low/
 

BigJim#1-8

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#3
Another thing about HELOC's is the application is like the DUI test in the jerk.
HELOC's like all credit can be good IF used correctly.
 

Usury

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#4
HELOCS are adjustable rate mortgages. Rates are going up. Bad idea. ‘Nuff said