DUBLIN–(BUSINESS WIRE)–That “US Home Loan Market – Growth, Trends, Impact of COVID-19 and Forecasts (2022-2027)” Report has been added ResearchAndMarkets.com Offer.
Factors driving the global home equity loan market include rising home prices, popular home innovations and improvements, tax deductions for interest payments, lower interest payments compared to other borrowing methods, the availability of upfront lump sum payments and fixed monthly payments.
The fear of losing your property if you fail to make loan payments, high closing costs, refinances with payouts, reverse mortgages and lengthy procedures are the things holding the global home equity market back.
Among the elements that present lucrative potential for the global home equity lending industry is the strong demand for home equity loans and their superiority over alternative lending options.
Key Market Trends
The home equity market is being stimulated by rising home prices
According to the latest home price index data from the Federal Housing Finance Agency (FHFA), home prices in the US rose 18.7 percent between the first quarter of 2021 and the first quarter of 2022.
The cost of buying a home increased due to higher mortgage rates, which rose significantly in March and April. However, these significant jumps may level off. According to a recent Zillow poll, 60% of real estate professionals don’t believe the real estate market is in a bubble, pointing to solid fundamentals like a shortage of inventory and changing housing tastes as the cause of the double-digit growth in home prices over the past few years .
As buyers struggle in this challenging market, homeowners are seeing property values soar. Homeowners benefit from larger stock gains as a result of rising home values. According to a recent CoreLogic report, American homeowners will have over $60,000 in equity in the first quarter of 2022.
Increasing the opportunity for home equity loans
Unlike in previous years, the market for mortgage lending and lines of credit has recently barely registered itself at the counter. After the outbreak of the epidemic, some major lenders such as JPMorgan Chase and Wells Fargo essentially put the company on hold.
The primary mortgage market for purchases and refinancing has now become more subdued due to rising interest rates. The equity that people have in their existing homes continues to increase as property prices continue to rise due to high demand.
In fact, analysis by TransUnion says tapable home equity hit an all-time high of $20 trillion in Q4 2021 (excluding reasonable exclusions.)
A key mortgage method of raising equity, cash-out refinancing, was down 4 percent year-over-year in the quarter. Home equity loans are up 13% year over year, while home equity lines of credit (HELOCs) are up 31% over the same period.
The report covers the major players in the US home equity market. In terms of market share, only a few of the big players currently dominate the market.
However, with advances in technology and product innovation, mid-size to large companies are increasing their market presence by signing new contracts and entering new markets.
Main topics covered:
1.1 Study assumptions and market definition
1.2 Scope of the Study
2 RESEARCH METHOD
4 MARKET DYNAMICS AND INSIGHTS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restrictions
4.4 Insights into various regulatory trends
4.5 Insights into the impact of technology and innovation
4.6 Industry Attractiveness – Porter’s Five Forces Analysis
4.7 Impact of COVID-19 on the market
5 MARKET SEGMENTATION
5.1 By type
5.1.1 Fixed Rate Loan
5.1.2 Home Equity Lines of Credit
5.2 By Service Providers
5.2.1 Commercial Banks
5.2.2 Financial Institutions
5.2.3 Credit Unions
5.2.4 Other Creditors
5.3 By mode
6 COMPETITIVE LANDSCAPE
6.1 Overview of Market Concentration
6.2 Company Profiles
6.2.1 Bank of America
6.2.2 Flagstar Bank
6.2.3 PenFed Credit Union
6.2.4 Tracking Bank
6.2.5 US Bank
6.2.6 PNC bank
6.2.7 Federal Navy
6.2.8 NBKC Bank
6.2.9 Credit Assistance
6.2.10 Citizens Commerce Bank
7 MARKET OPPORTUNITIES AND FUTURE TRENDS
For more information about this report, see https://www.researchandmarkets.com/r/nw0kae