Homeowners Upbeat That Equity Rise Will Continue
To put it simply, homeowners are amped about their home equity. More than 80 percent of 1,000 homeowners polled believe their home's value will continue to rise for the next 3 years. Some even believe that over the next 5 years they will continue to see an increase. With this, many owners are turning to home equity loans in an effort to make their homes more valuable. Fifty-two percent of homeowners reportedly used their home equity loans for home improvements believing that it would further increase their home value.
We do, however, expect to see a drop in home equity loans in the coming months as the government rid the interest deduction. This won't be immediate considering only 4 percent of those homeowners surveyed knew about the removal of home equity interest from their tax deductions. Nonetheless, the broad consensus is that homeowners are feeling happy and optimistic about their home value and view their home equity as an investment for retirement.