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Yahoo
13 hours ago
- Business
- Yahoo
Americans Have Over $34T In Wealth Trapped In Home Equity — And Wall Street Is Trying To Get Its Hands On As Much Of It As Possible
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Home equity has been one of the largest sources of wealth in America for decades, but has been overlooked because of the limited options homeowners have to unlock it. With the amount of wealth tied up in equity reaching record highs, Wall Street has become increasingly aggressive in finding ways to tap into it. Americans now hold $34.7 trillion in home equity – more than the entire U.S. GDP. Of that, mortgage holders account for $17.6 trillion, and roughly $11.5 trillion is considered "tappable," according to data from ICE Mortgage Technology. It's a mountain of wealth. And Wall Street wants in. Homeowners once used cash-out refinancing to access their equity, but with 30-year mortgage rates hovering around 7%, that's no longer viable for many. Instead, homeowners are leaning into second mortgages, HELOCs, and other equity-tapping strategies that let them keep their original low-rate mortgage in place. That has ignited a boom in securitized debt backed by home equity. Wall Street is already cashing in. In 2024, firms issued over $18 billion in bonds backed by home equity products, triple the amount from the year before, and the pace hasn't slowed down in 2025. Firms like Annaly Capital, Angel Oak, and even Rocket Companies are creating a pipeline of second-lien and HELOC-backed bonds for institutional buyers. Check out: Wall Street has been quietly buying up equity in owner-occupied homes, and the strategy is kind of genius. Three major forces are driving this frenzy: Record-high homeowner equity, with average leverage at just 45% High mortgage rates make cash-out refinancing impractical Institutions are hungry for stable, yield-producing investments backed by real assets What stands out most is how quickly this is evolving. Forward flow agreements, where investors commit to buying loans before they're even made, are becoming more common. And securitizations are ramping up, drawing in more institutional players each quarter. There's also growing demand for alternative structures. Home Equity Agreements (HEAs), where homeowners get upfront cash in exchange for a share of future home value, are gaining traction. These deals more than tripled last year and are now drawing capital from some of the biggest names in private credit. While securitizing home equity loans isn't new, the scale, sophistication, and investor interest we're seeing now is. Some are comparing it to the early days of mortgage-backed securities, but this time with stronger credit quality, more regulation and far less exposure to subprime borrowers. That doesn't mean it's risk-free. If home prices fall or unemployment spikes, some of these bets could sour. But for now, the fundamentals, like low housing supply, high demand and strong consumer balance sheets, are working in Wall Street's favor. Read next: Wall Street's latest obsession? Taking slices of your neighbor's home equity and turning it into double-digit returns. Image: Shutterstock This article Americans Have Over $34T In Wealth Trapped In Home Equity — And Wall Street Is Trying To Get Its Hands On As Much Of It As Possible originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
Yahoo
2 days ago
- Business
- Yahoo
HELOC rates today, June 10, 2025: Interest rates on home equity lines of credit ease lower
HELOC interest rates drifted slightly lower today. Home equity line of credit lenders remain aggressive in pricing as demand for second mortgages increases. '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 Mortgage Technology, said in a release. The home equity data firm reported that 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. 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 dropped two basis points to 6.83% today. The same rate is also available on 15- and 20-year HELOCS. VA-backed HELOCs also remained stable at 6.39%. 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
Business Wire
30-04-2025
- Business
- Business Wire
United Wholesale Mortgage Selects ICE Mortgage Technology to Power In-House Servicing Strategy
ATLANTA & PONTIAC, Mich.--(BUSINESS WIRE)--Intercontinental Exchange, Inc. (NYSE: ICE), a leading global provider of technology and data, today announced that United Wholesale Mortgage (UWM) has signed a long-term agreement to license ICE Mortgage Technology's industry-leading MSP® loan servicing system. Selecting MSP will allow the nation's largest mortgage lender to bring its servicing operations in-house with a modern, comprehensive solution that streamlines the entire servicing process. Operating exclusively through the wholesale channel, UWM's shift to in-house servicing will enable it to curate a homeowner experience that yields increased recapture and referral business for its mortgage broker network. UWM selected MSP for the system's powerful features, scalability and capacity to support outstanding customer service that fosters borrower retention, and the fact that ICE is an independent, neutral and proven technology provider. 'ICE Mortgage Technology is exclusively dedicated to serving businesses that power the housing finance economy,' said Tim Bowler, President of ICE Mortgage Technology. 'Our solutions simplify every stage of the loan lifecycle to promote a smoother, more efficient and more cost-effective mortgage experience for everyone involved. As a neutral provider of third-party software, lenders and servicers can rest assured that we will always be in their corner, helping them support the American dream of homeownership and working to make them successful every day.' As part of the implementation of MSP, UWM will deploy ICE Servicing Digital™, an intuitive homeowner portal with robust retention and recapture features that keep borrowers engaged through the life of a loan, and ICE Loss Mitigation, which fully integrates with Servicing Digital to help homeowners facing hardship connect with assistance. Additionally, UWM will leverage ICE Customer Service to deliver timely homeowner support, ICE Automated Lien Release to streamline lien releases, and ICE's Servicing APIs to integrate its broader tech stack for improved operational efficiency. 'We are excited to partner with ICE Mortgage Technology to bring our servicing portfolio in-house. This is a huge win for UWM and, more importantly, the broker community,' said Mat Ishbia, Chairman, President and CEO of UWM. 'This will mean a better experience for borrowers and a stronger, stickier relationship with their brokers, which we believe could result in more repeat business and referrals — the foundation for long-term growth and success. While we are excited about the cost savings for UWM, we're even more excited about the opportunity to help brokers deepen their relationships with borrowers by leveraging MSP.' 'We are honored that UWM has entrusted us to supply the technology underpinning its new servicing strategy,' said Ben Jackson, President of ICE. 'By leveraging our platform and many of our complementary solutions, UWM will gain access to a powerful, scalable system for delivering a consistent, world-class servicing experience that drives repeat and referral business and supports homeownership in communities nationwide.' ICE Mortgage Technology delivers an end-to-end mortgage technology ecosystem that lowers costs, maximizes operational efficiency and creates new business opportunities for housing professionals. Built on a shared data standard, ICE Mortgage Technology's interconnected platform facilitates collaboration among mortgage stakeholders while automating workflows across the loan lifecycle. About UWM Holdings Corporation and United Wholesale Mortgage Headquartered in Pontiac, Michigan, UWM Holdings Corporation (UWMC) is the publicly traded indirect parent of United Wholesale Mortgage, LLC ('UWM'). UWM is the nation's largest home mortgage lender, despite exclusively originating mortgage loans through the wholesale channel. UWM has been the largest wholesale mortgage lender for 10 consecutive years and is also the largest purchase lender in the nation. With a culture of continuous innovation of technology and enhanced client experience, UWM leads the market by building upon its proprietary and exclusively licensed technology platforms, superior service and focused partnership with the independent mortgage broker community. UWM originates primarily conforming and government loans across all 50 states and the District of Columbia. For more information, visit or call 800-981-8898. NMLS #3038. Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 -- Statements in this press release regarding UWMC's business that are not historical facts or statements 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 UWMC's Securities and Exchange Commission (SEC) filings. 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.
Yahoo
25-04-2025
- Business
- Yahoo
Left temporarily homeless by Helene, many struggle to pay their mortgages
Hudson, Florida — Six months after Hurricane Helene hit Beth and Alex Brightman's home in Hudson, Florida, the flood damage is still visible. Since then, they have changed the message at their front door to "Let's not stay home." "It originally said, 'let's stay home,' because that's all we wanted to do, was stay here in our retirement home," Beth explained. The Brightman's thought the would be OK, because they have both flood insurance and homeowner's insurance. However, flood insurance only covered damage to the structure of their home, and homeowner's insurance doesn't cover contents lost from flooding. Flood insurance must be purchased separately, often from the federal government. FEMA estimates only 4% of homeowners across the country have flood insurance. "If we had a hole in the roof and rain came in, then our belongings would have been covered through the homeowner's," Beth told CBS News. As a result, they are using savings for repairs while living in a rental but still with a $2,500 monthly mortgage. About a month after hurricanes Helene and Milton hit the Southeast, nearly 60,000 homeowners fell behind on their mortgages, according to ICE Mortgage Technology, which tracks mortgage data. And there's been a similar trend after January's devastating Los Angeles-area wildfires. Right now, 4,100 homeowners there are delinquent on their mortgage payments, per ICE Mortgage Technology. Paul Willen, principal economist for the Federal Reserve Bank of Boston, says that, historically, lenders have worked out arrangements with disaster victims. "They understand that you have short-term cash flow issues," Willen said. "…The last thing they want is for a borrower to end up defaulting on a mortgage." One option with your bank is forbearance, which allows you to temporarily pause mortgage payments. "It basically gives you a way of paying for stuff up front, and freeing up cash flow," Willen said. The forbearance option gave the Brightmans relief from their house payments for six months. "It's been helpful, but then now it's going to turn around and be a big bite," Beth said. That bite will be about $15,000, the total amount deferred that is now coming due all at once. And forbearance can also have long-term consequences for homeowners, affecting credit, ability to refinance and home equity. Says Beth and Alex: "This is the year to rebuild, recover, and from there." Sneak peek: The Detective's Wife Judge halts own order demanding Kilmar Abrego Garcia updates NIH | Sunday on 60 Minutes
