Second Mortgages on the Rise
Daily Real Estate News | Tuesday, October 16, 2012
Researchers at Equifax say total outstanding balances of second home mortgages at banks rose in September for the first time in nearly five years.
Though the increase was relatively small — about three-tenths of a percent — analysts say any uptick in the amount of second mortgages is a bellwether event, indicating that major lenders are showing growing confidence that the real estate market has finally made the turn to recovery.
According to Equifax’s latest National Consumer Credit Trends study, home equity lending appears to be rebounding fastest in the following states:
- New Mexico and California: +2.3%
- Nevada: +2.1%
- Colorado: +2%
- Florida: +1.6%
The Federal Reserve recently reported that American home owners’ equity stakes rose $406 billion in the second quarter, a 5.9 percent increase over the previous quarter and the highest it has been since 2008.
Source: "Lenders Granting More Second Mortgages as Home Values Rise" Los Angeles Times (10/14/12)
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