21 June 2019

During the previous 15 years, HELOC debt has become the second largest debt category, following only mortgages. These loans aren’t bad at all, but the increase in borrowing after home prices started growing sharply may lead to unstable position for borrowers. That’s why the government is very concerned over this issue.

The balance of such loans reached $300.93 billion in April, which is 0.44% higher than in March and 7.56% higher than in April 2018. It’s the first time the number exceeds $300 billion. Moreover, it’s the biggest annual hike for April since 2017, and no other gain has been even close to this result.