US Home Equity Lending Market Insights Forecasts to 2033

• The Market Size is Growing at a CAGR of 4.9% from 2023 to 2033
• The US Home Equity Lending Market Size is Expected to Hold a Significant Share by 2033.

 The US Home Equity Lending Market is Anticipated to hold a significant share by 2033, growing at a CAGR of 4.9% from 2023 to 2033. Market expansion is driven by tax advantages for interest payments, but worries about property loss and expensive closing expenses endure.

Market Overview

A home equity loan is a kind of credit where the debtors pledge the value of their house as security. The worth of the property determines the loan amount, and a lending institution appraiser determines the property's value. House equity loans are frequently utilized to cover large expenses such as house repairs, medical bills, and college tuition. A home equity loan places a lien on the borrower's home, reducing actual home equity. House equity loans are frequently utilized to cover large expenses such as house repairs, medical bills, and college tuition. A home equity loan places a lien on the borrower's home, reducing actual home equity. Mortgages and credit unions are the best options for US home equity lending. There is an increasing demand for reputable lenders for consumer home equity loans to avoid scams and obtain a reasonable rate. Credit unions offer a variety of services, including receiving deposits, maintaining checking and savings accounts, issuing credit and debit cards, and offering home loans. Customers increasingly prefer credit unions due to the offer of the lowest interest rates on credit goods such as mortgages.

Report Coverage

This research report categorizes the market for the US home equity lending market based on various segments and regions and forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the US home equity lending market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the US home equity lending market.

Driving Factors

Home equity value is computed by deducting the remaining mortgage debt from the property's market value. This indicates that as the debtor pays off the mortgage, the ratio of home equity to real estate property worth grows. Tax breaks for interest payments drive market growth, while concerns about property loss and high closing costs persist. Despite rising prices, home equity loans provide homeowners with financial flexibility and significant tax benefits.

Restraining Factors

However, concerns about property security and the financial burden of closing expenses dampen enthusiasm. Procedural complications impede expansion, needing simpler methods to improve accessibility.

Market Segmentation

The US home equity lending market share is classified into service providers and type.

• The mortgage and credit unions segment is expected to hold a significant market share through the forecast period.   

The US home equity lending market is segmented by service providers into commercial banks, financial institutions, mortgage and credit unions, and other creditors. Among these the mortgage and credit unions segment is expected to hold a significant market share through the forecast period. Technology driven financing application processes make it simpler and more quickly to get money for debt consolidation or home renovation projects.

• The home equity line of credit segment is expected to hold a significant market share over the predicted period.

The US home equity lending market is segmented by type into fixed rate loans and home equity line of credit. Among these the home equity line of credit segment is expected to hold a significant market share over the predicted period. HELOCS are appealing for continuing financial requirements or projects due to they provide more flexibility allowing borrowers to draw funds as needed and pay interest solely on the amount used. With the current state of the economy and fluctuating interest rates this flexibility is especially enticing.  

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the US home equity lending market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Bank of America
• Flagstar Bank
• PenFed Credit Union
• Chase Bank
• US Bank
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Developments

• In August 2023, Spring EQ, a supplier of home equity financing solutions, has signed a formal agreement to be purchased by a subsidiary of Cerberus Capital Management, L.P., a global alternative investment firm. The primary goal of the collaboration is to assist Spring EQ's purpose of delivering services and expanding its leadership in the home equity finance sector.

Market Segment

This study forecasts revenue at the United States, regional, and country levels from 2020 to 2033. Spherical Insights has segmented the US Home Equity Lending Market based on the below-mentioned segments:

US Home Equity Lending Market, By Service Providers

• Commercial banks
• Financial Institutions
• Mortgage & Credit Unions
• other creditors

US Home Equity Lending Market, By Type

• Fixed-Rate Loans
• Home Equity Line of Credit