An unprecedented proportion of homeowners now express interest in home equity credit products, according to SYNERGISTICS Research Corporation’s Fourteenth Annual Home Equity Lending Monitor. In response to recovery in the housing market, an anticipated rebound in the home equity credit market appears to be “taking hold.” According to survey findings, one-fifth of homeowners indicate that they have some type of credit secured by the equity in their home, other than a first mortgage. Those homeowners who do not have any type of credit secured by their equity – nonholders – were asked how interested they would be in an equity line of credit. One-third of nonholders express some degree of interest, and one-tenth would be “very” interested. This group, defined as ELC prospects, represents 28% of all homeowners. Half are nonholders who do not express interest.
William H. McCracken, CEO of SYNERGISTICS, stated, “Overall, the home equity credit market continues to reflect a rebounding housing sector and overall economy. Findings from our recent wave of the Home Equity Lending Monitor, reveal a significant level of interest in home equity credit products. Providers have significant opportunities in the home equity market. Maintaining and strengthening current equity credit relationships should always be a priority. In addition, equity credit providers should prepare to ‘ramp up’ strategies and tactics to widen market share in a growing prospect base.”
These are findings from SYNERGISTICS study, Fourteenth Annual Home Equity Lending Monitor 2014, featuring a national telephone and Internet survey of 1,000 homeowners age 18 or older. This survey is the industry’s most comprehensive examination of consumer behavior in the home equity market including both home equity lines of credit and second mortgages. Findings will be discussed in a telephone conference for project sponsors on Monday, January 26, 2015.