When the Great Recession hit in late 2007, home equity loan numbers plunged from an all-time high of $120 billion earlier that year to less than $10 billion per year in 2009. And although it’s nowhere near the heyday of the early 2000s, 2017 seems on the way back to near $50 billion by the end of this year.
Consequently, home equity lines of credit and cash-out mortgage refinances are coming back in style as home availability shortages are outpacing demand in most parts of the country — a result of increasing employment and rising confidence that an improving U.S. economy is underway.