Latest news with #AndyWalden
Yahoo
7 days ago
- Business
- Yahoo
HELOC rates today, June 3, 2025: Interest rates on home equity lines of credit are unchanged
HELOC interest rates were stable today, unchanged from yesterday. How hot are HELOCs? In a new analysis, Intercontinental Exchange (ICE), a mortgage data provider, said second mortgage home equity withdrawals in the first quarter of 2025 grew 22% year over year to nearly $25 billion. That's the highest first quarter volume since 2008. 'Equity levels remain historically high, and now we're seeing the cost of borrowing against that equity drop meaningfully,' Andy Walden, Head of Mortgage and Housing Market Research at ICE, said in a release. 'The monthly payment needed to withdraw $50,000 via a home equity line of credit (HELOC) has fallen by more than $100 since early 2024." Now, let's check the latest HELOC rates. Dig deeper: HELOC vs. home equity loan: Tapping your equity without refinancing According to Zillow, rates on 10-year HELOCs held steady at 6.81% today. The same rate is also available on 15- and 20-year HELOCS. VA-backed HELOCs also remained stable at 6.36%. Homeowners have a staggering amount of value tied up in their houses — more than $34 trillion at the end of 2024, according to the Federal Reserve. That's the third-largest amount of home equity on record. With mortgage rates lingering in the high 6% range, homeowners are not likely to let go of their primary mortgage anytime soon, so selling the house may not be an option. Why let go of your 5%, 4% — or even 3% mortgage? Accessing some of the value locked into your house with a use-it-as-you-need-it HELOC can be an excellent alternative. HELOC interest rates are different from primary mortgage rates. Second mortgage rates are based on an index rate plus a margin. That index is often the prime rate, which today is 7.50%. If a lender added 1% as a margin, the HELOC would have a rate of 8.50%. However, you will find reported HELOC rates are much lower than that. That's because lenders have flexibility with pricing on a second mortgage product, such as a HELOC or home equity loan. Your rate will depend on your credit score, the amount of debt you carry, and the amount of your credit line compared to the value of your home. And average national HELOC rates can include "introductory" rates that may only last for six months or one year. After that, your interest rate will become adjustable, likely beginning at a substantially higher rate. You don't have to give up your low-rate mortgage to access the equity in your home. Keep your primary mortgage and consider a second mortgage, such as a home equity line of credit. The best HELOC lenders offer low fees, a fixed-rate option, and generous credit lines. A HELOC allows you to easily use your home equity in any way and in any amount you choose, up to your credit line limit. Pull some out; pay it back. Repeat. Meanwhile, you're paying down your low-interest-rate primary mortgage like the wealth-building machine you are. Today, FourLeaf Credit Union is offering a HELOC rate of 6.49% for 12 months on lines up to $500,000. That's an introductory rate that will convert to a variable rate later. When shopping lenders, be aware of both rates. And as always, compare fees, repayment terms, and the minimum draw amount. The draw is the amount of money a lender requires you to initially take from your equity. The power of a HELOC is tapping only what you need and leaving some of your line of credit available for future needs. You don't pay interest on what you don't borrow. Rates vary so much from one lender to the next that it's hard to pin down a magic number. You may see rates from nearly 7% to as much as 18%. It really depends on your creditworthiness and how diligent a shopper you are. For homeowners with low primary mortgage rates and a chunk of equity in their house, it's probably one of the best times to get a HELOC. You don't give up that great mortgage rate, and you can use the cash drawn from your equity for things like home improvements, repairs, and upgrades. Of course, you can use a HELOC for fun things too, like a vacation — if you have the discipline to pay it off promptly. A vacation is likely not worth taking on long-term debt. If you take out the full $50,000 from a line of credit on a $400,000 home, your payment may be around $395 per month with a variable interest rate beginning at 8.75%. That's for a HELOC with a 10-year draw period and a 20-year repayment period. That sounds good, but remember, it winds up being a 30-year loan. HELOCs are best if you borrow and pay back the balance in a much shorter period of time.
Yahoo
02-06-2025
- Business
- Yahoo
ICE Mortgage Monitor: Record Levels of Home Equity and Falling Rates Drive Highest HELOC Withdraws Since 2008
48M homeowners sit on $11.5T in tappable equity entering Q2 2025 as HELOC rates ease, driving demand ATLANTA & NEW YORK, June 02, 2025--(BUSINESS WIRE)--ICE Mortgage Technology, a neutral provider of a robust end-to-end mortgage platform and part of Intercontinental Exchange, Inc. (NYSE: ICE), today released its June 2025 Mortgage Monitor report. The analysis of mortgage, real estate and public records data shows U.S. mortgage holders carried a record $17.6 trillion in home equity entering the second quarter of 2025, with $11.5 trillion considered "tappable" — that is, available for borrowing while maintaining at least a 20% equity cushion. Despite subdued withdrawal rates in recent years, early 2025 data points to shifting borrower behavior. First-quarter second lien equity withdrawals rose 22% year over year to nearly $25 billion — the largest first quarter volume in 17 years — suggesting increased interest in home equity access amid improving loan affordability. "Equity levels remain historically high, and now we're seeing the cost of borrowing against that equity drop meaningfully," said Andy Walden, Head of Mortgage and Housing Market Research at ICE. "The monthly payment needed to withdraw $50,000 via a home equity line of credit (HELOC) has fallen by more than $100 since early 2024. If the Fed moves forward with anticipated rate cuts, borrowing against home equity could become even more attractive in the second half of the year." The average introductory rate on second lien HELOCs has declined by 2.5 percentage points in recent quarters, dropping below 7.5% in March. If current market forecasts hold, HELOC rates could dip into the mid-6% range by 2026 — roughly on par with projected 30-year mortgage rates. This easing has already translated into lower monthly payments for borrowers. According to ICE's McDash Home Equity database, the average monthly payment needed to borrow $50,000 dropped from $412 in early 2024 to $311 by the end of the first quarter of 2025. Other highlights from the June 2025 Mortgage Monitor include: 48 million mortgage holders have tappable equity, with the average homeowner sitting on $212K. Mortgaged homes are, on average, only 45% leveraged, suggesting ample cushion for equity access. Lenders are becoming more aggressive with their HELOC rate offerings, with the spread to prime falling to the lowest levels since 2022. Equity withdrawals — including cash-out refinances — totaled $45 billion in the first quarter of 2025, the highest first quarter volume since 2022. Borrowers tapped just 0.41% of available tappable equity in the first quarter of 2025, still below long-term averages, indicating further room for growth. "In our latest ICE Borrower Insights Survey, roughly 25% of homeowners said they are considering a home equity loan or HELOC in the next year. It's periods like these — where both demand and affordability trends converge — that represent a critical opportunity for housing finance professionals to earn homeowners' repeat business," said Tim Bowler, President of ICE Mortgage Technology. "As a neutral technology provider dedicated to the success of our lender and servicer clients, we've invested heavily in developing an advanced, end-to-end mortgage platform that engages borrowers with timely, relevant offers while keeping costs in check. It's one of the ways we're helping our clients remain responsive, serve their communities and retain customers in a changing market." The full June Mortgage Monitor report also contains a deep analysis of April mortgage performance data and a housing market update featuring May ICE Home Price Index (HPI) data. Further detail, including charts, can be found in this month's Mortgage Monitor. About the ICE Mortgage Monitor ICE manages the nation's leading repository of loan-level residential mortgage data and performance information covering the majority of the overall market, including tens of millions of loans across the spectrum of credit products and more than 160 million historical records. The ICE Home Price Index provides one of the most complete, accurate and timely measures of home prices available, covering 95% of U.S. residential properties down to the ZIP code level. In addition, the company maintains one of the most robust public property records databases available, covering 99.9% of the U.S. population and households from more than 3,100 counties. ICE's research experts carefully analyze this data to produce a summary supplemented by dozens of charts and graphs that reflect trend and point-in-time observations for the monthly Mortgage Monitor report. To review the full report, visit: About Intercontinental Exchange Intercontinental Exchange, Inc. (NYSE: ICE) is a Fortune 500 company that designs, builds, and operates digital networks that connect people to opportunity. We provide financial technology and data services across major asset classes helping our customers access mission-critical workflow tools that increase transparency and efficiency. ICE's futures, equity, and options exchanges -- including the New York Stock Exchange -- and clearing houses help people invest, raise capital and manage risk. We offer some of the world's largest markets to trade and clear energy and environmental products. Our fixed income, data services and execution capabilities provide information, analytics and platforms that help our customers streamline processes and capitalize on opportunities. At ICE Mortgage Technology, we are transforming U.S. housing finance, from initial consumer engagement through loan production, closing, registration and the long-term servicing relationship. Together, ICE transforms, streamlines, and automates industries to connect our customers to opportunity. Trademarks of ICE and/or its affiliates include Intercontinental Exchange, ICE, ICE block design, NYSE and New York Stock Exchange. Information regarding additional trademarks and intellectual property rights of Intercontinental Exchange, Inc. and/or its affiliates is located here. Key Information Documents for certain products covered by the EU Packaged Retail and Insurance-based Investment Products Regulation can be accessed on the relevant exchange website under the heading "Key Information Documents (KIDS)." Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 -- Statements in this press release regarding ICE's business that are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see ICE's Securities and Exchange Commission (SEC) filings, including, but not limited to, the risk factors in ICE's Annual Report on Form 10-K for the year ended December 31, 2024, as filed with the SEC on February 6, 2025. Source: Intercontinental Exchange Category: Mortgage Technology ICE-CORP View source version on Contacts ICE Media Contact:Johnna +1 (404) 798-1155 ICE Investor Contact:Katia +1 (678) 981-3882 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Axios
28-04-2025
- Business
- Axios
How much of Tampa Bay's mortgage bill is consumed by home insurance
Insurance eats up more of a homeowner's housing bill in Tampa Bay than almost anywhere else in the nation, data shows. Why it matters: Steep insurance costs have dragged down our housing market, with demand plummeting, houses on the market longer and fewer people moving here. Zoom in: Home insurance made up 14.9% of the average mortgage payment here in December, per ICE Mortgage Monitor, a data provider for the industry. Only New Orleans, Miami and Oklahoma City had higher shares. The analysis looks at single-family homes with mortgages that have taxes and insurance escrowed. By the numbers: Our average payment ballooned from $192 a month to $300 over the past decade. The national average jumped from $106 to $191. Context: A decade ago, insurance made up over 15% of the average payment in Tampa Bay. But it dipped through the mid-2010s. More frequent natural disasters, plus rising costs to rebuild homes afterward, have hiked insurance costs, says Andy Walden, ICE's head of mortgage and housing market research. Helene and Milton wrought an estimated $5 billion in damage for Hillsborough and Pinellas counties. Zoom out: Florida homeowners had the highest average annual home insurance bill last year at $14,140. As a result, 1 in 5 homeowners in the state have opted to forgo coverage altogether.
Washington Post
14-04-2025
- Business
- Washington Post
Home prices are dropping in some cities. See what it's like in your neighborhood.
Home prices are cooling off in many parts of the country — even falling in some regions — as more homes are listed for sale, slightly easing the long-standing inventory crunch. Prices for single-family homes grew only 2.7 percent nationally in the last year, compared to more than 6 percent the year prior, according to a Washington Post analysis of home value data from the mortgage technology division of Intercontinental Exchange (ICE). The market is leveling as demand from buyers remains constrained and more homes come up for sale. But costs still remain highly elevated from the pre-pandemic years — since 2019, prices are up nearly 60 percent. Price swings vary widely in different regions of the country. Enter your Zip code below to see how the market value of the average home in your area has changed. Use Ctrl + scroll to zoom the map Use two fingers to move the map, or press to enter fullscreen mode © OpenMapTiles © OpenStreetMap contributors Enter a Zip code Change in home value, Feb. 2024 to Feb. 2025 0% 2.5% 5% 7.5% 10% 12.5% No data Hover over an area to view details Story continues below advertisement Advertisement 'Its really a supply-side story,' said Andy Walden, head of mortgage and housing market research for ICE. Over the last six years, home prices and mortgage rates grew rapidly, meaning many households were unable to afford homes and started sitting out of the market, said Hannah Jones, senior economic research analyst at The number of homes on the market remained low, and buying a home became out of reach for many. 'Buyers were just simply hit with the housing affordability challenges,' said Lawrence Yun, chief economist of the National Association of Realtors. 'The buying aspiration is there, it's just that the capacity is not.' Now, mortgage rates have ticked down and home prices aren't rising so rapidly, which has attracted slightly more buyers, Walden said. Story continues below advertisement Advertisement The increase in inventory has also changed the dynamics of buying a home, especially in the Sun Belt, where prices have actually fallen in several major cities as new homes are built and fewer people flood into the region compared to the early pandemic years. © OpenMapTiles © OpenStreetMap contributors Change in home value, Feb. 2024 to Feb. 2025 0% 2.5% 5% 7.5% 10% 12.5% No data Several of the biggest drops in home values were in Florida, especially around the Gulf Coast, which has been hit with several major hurricanes in the past two years. That's led to higher interest rates, a heightened awareness of flood risk and an increase in inventory as people move. Florida was one of the most popular places people migrated in the past five years, leading to a huge influx of new residents and a packed real estate market. But now, Rick Harrison, a real estate adviser in Fort Myers, said demand has started to slow. 'A lot of them are very leery of buying anything along the coast,' he said, adding that he now brings insurance quotes to house showings for clients to factor into the cost. The average single-family home value in Lee County, where Fort Myers is located, is now $412,000, down 6 percent from last year. Story continues below advertisement Advertisement Prices are also falling in many parts of Texas, especially around the major cities of Austin, Dallas and Houston. Texas cities experienced big population increases in the past five years, as remote workers and others moved to the relatively less expensive areas. Now that buyer demand has softened, said Jones, who is based in Austin. At the same time, newly built homes that were part of a construction boom are being listed, together driving down prices. In the Dallas-Fort Worth area, real estate agent Todd Luong said he's seen an increase of more than 30 percent in the number of homes listed compared to a year ago, a huge increase in inventory even as prices remain relatively high. 'Dallas is not as affordable as it used to be,' he said. 'Our prices are kind of catching up with the rest of the country.' The increase in the number of homes may be easing prices in many regions, but some areas of the country are still in a tight inventory crunch with rising prices. In parts of the Midwest and Northeast especially, there's pent-up demand for homes. 'The Northeast is still highly, highly, highly competitive,' Jones said. In Upstate New York, the lack of inventory continues to be a big challenge for buyers, said Katrina Ruberti, a licensed associate real estate broker at Howard Hanna in the region surrounding the state capital of Albany. She'll see a $450,000 house sell for $60,000 over the asking price after receiving multiple offers, she said. Story continues below advertisement Advertisement Nationally, the cooling home prices and interest rates are starting to even things out in the market, making things slightly more affordable for buyers, Walden said. 'We're moving in the right path but we're still a ways from our destination in returning to our more normal levels of affordability,' he said.
Yahoo
03-03-2025
- Business
- Yahoo
Winners And Losers In The Real Estate Market—American Homeowners Are Sitting On $11.2 Trillion In Equity
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. The results of mortgage exchange operator Intercontinental Exchange's November 2024 ICE Mortgage Monitor, shows American homeowners are sitting on $11.2 trillion in accessible equity. The total equity is $17.2 trillion, but the available amount is smaller because most home equity lenders don't like lending out more than 80% of the homeowner's equity. Nevertheless, ICE Mortgage Monitor's study illustrates the unprecedented borrowing power possessed by American homeowners. The study showed that the average homeowner has $319,000 worth of equity in their home, with $207,000 of it being accessible. ICE noted that despite the available equity, borrowers have been using it at only half the 10-year average of 0.92%. Second mortgages are down by 26% and cash-out refinances declined by 69% in relation to normal borrowing activity. It's likely that reticence to access equity by homeowners has something to do with interest rates Don't Miss: Many don't know there are tax benefits when buying a unit as an investment — If there was a new fund backed by Jeff Bezos offering a ? "Despite a two-year high for equity withdrawals in the third quarter, homeowners are still tapping their housing wealth at less than half the rate they have historically." ICE Vice President of Research and Analysis Andy Walden said He continued, "Second lien withdrawal rates are currently running more than a quarter below 'normal' and cash-out refi withdrawals are still down almost 70%. Over the past 10 quarters homeowners have extracted $476B in equity, exactly half the extraction we'd expect to see under more normal circumstances. That equates to nearly a half a trillion untapped dollars that hasn't flowed back through the broader economy." The ICE study results also speak to the strength of the "lock-in effect," where today's homeowners are reluctant to sell because of the likelihood that they will re-enter a home market with reduced buying power due to higher home prices and mortgage rates. Now it appears that the "lock-in" effect is taking a chunk out of home equity borrowing as well. The good news for homeowners is that they have equity to access at all. Trending: CEO of Integris gathered a team of senior investment managers who have $34.22 billion in combined owned and managed assets in the West Coast — That's what it looks like on the winning side of this equation. On the other side, sit prospective buyers, who are taking hits from all sides. The lock-in effect means less inventory, while high construction costs keep developers in the most inventory-starved markets on the sidelines. The high interest rates are a double whammy for buyers because developers depend on financing to get projects off the ground and buyers need financing to complete purchases. Buyers are also growing more pessimistic about the prospect of interest rates ever returning to the low-single digits like they were between the great financial crisis of 2008 and the COVID-19 pandemic. A New York Federal Reserve study on consumer expectations released last May showed respondents believe interest rates will be near 10% in the next three years. Although that study came out before the Federal Reserve lowered interest rates in late 2024, buyer pessimism remains high. The Fed's recent decision to pause the rate cuts due to fears over rising inflation put even more buyers back into a holding pattern. All told, it means the housing affordability crisis isn't going to get better anytime soon. If you're already an owner, you're likely sitting on a pile of equity. Read Next: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — , which provides access to a pool of short-term loans backed by residential real estate with just a $100 minimum. This article Winners And Losers In The Real Estate Market—American Homeowners Are Sitting On $11.2 Trillion In Equity originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Sign in to access your portfolio
