Many American homeowners can look back on 2016 as a year of growth. Specifically, growth in the amount of equity they now have in their home.
According to a report released by the Federal Reserve, the average American homeowner gained just over $12,000 in equity from September 2015 to September 2016. In some of the hot markets of the U.S., homeowners may have seen upwards of $25,000 in equity growth during that time frame.
Factors such as the low interest rates that continued to be available throughout 2016, coupled with the low inventory of homes for sale, drove the value of homes upward. In an article published in The Chicago Tribune by Kenneth R. Harney, additional factors for increased home values are detailed.
Harney goes on to suggest what homeowners with significant equity in their homes might choose to do with it. Homeowners who decide they want to tap into the equity instead of letting it continue to grow are advised to use the funds, which might be accessed via a home equity credit line, in a responsible manner such as home renovations, consolidation of credit card debt or student debt. Since rates are expected to rise in 2017, homeowners considering a HELOC as an option might want to act sooner rather than later.
Read the entire article for more details.
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