US homeowners begin to tap into real estate capital as rates change
An aerial perspective of existing homes alongside new construction in the Chatsworth neighborhood of Los Angeles on September 8, 2023, highlights a significant moment in the real estate market.
Recent data indicates that U.S. homeowners have a significant amount of home equity, but soaring interest rates over the past two years have made many reluctant to tap into that value. This trend, however, appears to be changing.
In the third quarter of this year, homeowners accessed $48 billion in home equity, marking the highest volume of withdrawals in two years, following the Federal Reserve's interest rate hikes. While mortgage rates do not directly follow Fed adjustments, home equity lines of credit (HELOCs) are affected. Notably, the Fed lowered rates by half a percentage point in mid-Sep...