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December 2, 2024
2025: The Year of Home Equity and HELOC Growth
As we approach 2025, the home equity market is positioned for significant growth. With mortgage rates stabilizing and millions of homeowners locked into low-rate first mortgages, Home Equity Lines of Credit (HELOCs) are stepping into the spotlight. Arc Home’s HomeEQ, a fully digitized HELOC solution, is here to help brokers, loan officers, and lenders capture this opportunity in a rapidly expanding market.
Market Trends That Set the Stage for HELOC Success
- Stable Mortgage Rates and Refinancing Stagnation: Mortgage rates are forecast to stabilize near 6% through 2025 . With over 40% of homeowners locked into rates below 4%, refinancing first mortgages is off the table for many borrowers. Instead, they’re turning to HELOCs to access their home equity without sacrificing their low-rate loans.
- Rising Home Equity: U.S. homeowners hold more than $29 trillion in home equity providing ample opportunity for HELOCs to meet the demand for financing needs like home improvements, debt consolidation, and other major expenses.
- Increased Home Sales Forecast for 2025: The National Association of Realtors projects a 9% increase in home sales next year, with rates stabilizing and market confidence rising.
Why HomeEQ is the Ideal Solution
In this rapidly growing market, HomeEQ is uniquely positioned to help brokers and loan officers thrive by offering a fully digitized HELOC solution. Here’s what sets HomeEQ apart:
- Speed and Efficiency: Borrowers can move from application to funding in as little as five days, offering unparalleled convenience.
- Digital-First Experience: From submission to closing, HomeEQ simplifies the process for borrowers and lenders alike with an intuitive, end-to-end digital platform.
- Revenue Opportunity: By offering HomeEQ, brokers and loan officers can generate new revenue streams and capitalize on a high-demand product while maintaining their clients’ first mortgages intact.
Looking Ahead to 2025
As we prepare for 2025, now is the perfect time to revisit your book of business from 2019-2022. Focus on prime customers who locked in historically low, first mortgage rates. Many have untapped equity and financing needs that align with HomeEQ’s advantages.
Demand for HELOCs will keep growing as borrowers look to preserve low-rate first mortgages while leveraging home equity. HomeEQ equips brokers and lenders with the right solution for today’s market and beyond. The future of home equity lending starts now — and HomeEQ is leading the way.
- Brian Devlin, President/CEO