Homeowners tap equity as HELOC balances post biggest jump since 2005: New York Fed report

Home equity line of credit balances jumped by the largest amount since 2005 in the latest quarter, marking the 18th straight quarterly increase, according to a Federal Reserve Bank of New York report. The surge shows homeowners are increasingly tapping accumulated home equity as a source of liquidity, extending a multiyear borrowing trend. The New York Fed data underscores how elevated home values are reshaping household balance sheets and credit usage. Watch for whether the pace of HELOC growth persists as lenders tighten standards and rates remain elevated.