Homeowners Tapped 50% More Equity in 2022

In 2022, more homeowners fought rising inflation by tapping into home equity. In two years, equity lines of credit originations rose 41% as equity loans rose 166%.

WASHINGTON – Originations of open-ended Home Equity Lines of Credit (HELOCs) and closed-end home equity loans increased 50% in 2022 compared to two years earlier, according to the latest Mortgage Bankers Association’s (MBA) Home Equity Lending Study.

“Home renovations and remodeling drove demand for home equity products in 2022, with roughly two-thirds of borrowers citing it as a reason for applying for a home equity loan,” says said Marina Walsh, CMB, MBA’s Vice President of Industry Analysis. “Other borrower reasons were for debt consolidation (25%) and emergency cash management or other (10%).”

Walsh says a number of things combined – the housing inventory shortage, home-price appreciation and a low-rate first mortgage – to “make home renovations an attractive alternative for many homeowners looking to improve their spaces. Additionally, a HELOC or home equity loan is one way to finance big home projects while receiving a tax advantage through the deductibility of mortgage interest.”

Select findings from MBA’s 2023 Home Equity Lending Study (covering data through December 31, 2022) include:


  • Average HELOC commitment volume (total credit offered) was $2.4 billion per repeater company in 2022, up 41% from $1.7 billion in 2020.
  • Weighted average HELOC loan balances on outstanding loans rose from $108,231 at the beginning of 3033 to $112,113 at year-end.
  • The credit score of an average HELOC borrower fell to 769 in 2022 from 780 in 2020. Average combined loan-to-value (CLTV) for funded HELOCs at closing dropped to 51% in 2022 from 54% in 2020, due in part to strong home-price appreciation nationwide.
  • On an annual basis, lenders expect HELOC outstanding debt to increase 8.2% this year and 9.9% in 2024.

Home equity loans

  • Weighted average home equity loan balances on outstandings rose from $52,653 at the beginning of the year to $61,114 at year-end.
  • The credit score of the average home equity loan borrower fell to 752 in 2022 from 768 in 2020.
  • Average home equity loan originations were $780 million per repeater company in 2022, up 166% from $293 million in 2020.
  • Lenders expect home equity loan debt outstanding to increase 11.4% in 2023 but decrease 5.6% in 2024.

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