As economic fallout from the Iran war mounted during the second quarter, mortgage lenders quietly put together one of their best quarters for home equity production since the Federal Reserve hiked interest rates four years earlier in the spring of 2022.
Experts across the sector don’t see the pace of equity extraction slowing, even with financial markets broadly expecting the Fed to raise its benchmark interest rate on Wednesday.
In today’s market, options for accessing home equity are plentiful, from traditional closed-end second liens to fixed-rate home equity lines of credit (HELOCs). Borrowers looking to tap equity but avoid a new monthly payment also have the option of a home equity investment (HEI), whereby borrowers can swap a lump s...