Due to rapidly rising home prices, homeowners have amassed considerable home equity during the past year. And they are increasingly tapping into that equity for home improvements, including backyard sanctuaries.
The demand for home equity loans and lines of credit is likely to increase because many homeowners – following the pandemic’s lockdowns – who might otherwise have “moved up” now find themselves “trapped” due to rising prices and a lack of inventory. And as interest rates rise, home equity loans will become more attractive compared with refinancing.
As Omar Jordan, CEO and founder of LenderClose, tells MortgageOrb, now is the time for mortgage lenders to jump on the trend if they haven’t already.