Curinos’ Home Equity Forecast, the industry’s first, suggests that demand for home-equity products is poised for a dramatic upturn in the second half of 2024, driven in large measure by expectations of lower rates and growth in home ownership.
In light of the expected rebound, now might be a good time for lenders to reconsider their stance on credit risk because the threat of higher collateral risk seems to have diminished. Market experts are projecting sustained growth of 1% to 6% in home values nationally, which may mitigate whatever future collateral risk remains on the books.
And while higher loan-to-value lending is certainly not the key to material growth this year, making credit more accessible to potential borrowers can play a vital role in improving the sentiment of potential home buyers.
For more home-equity insights, see our article “More Mortgage Malaise, Higher Hopes for Home Equity” in the latest Curinos Review.