Data released by the Credit Union National Association on Monday indicated that increasing consumer confidence and rising home prices contributed to a 0.4 percent uptick in home equity loans in November.
“We’re seeing a nice turnaround in home equity loans,” CUNA Senior Economist Steve Rick said. “After years of deleveraging and paying down debt, consumers are starting to borrow.”
According to S&P/Case-Shiller home price indexes released on Dec. 31 rose 13.6 percent in October, which Rick said could give homeowners access to available equity.
Rising mortgage rates have contributed to the upswing in adjustable-rate mortgages, which accounted for 1.1 percent of loan growth in November. Fixed rate mortgages, however, declined by 0.04 percent.
CUNA said its monthly sample of credit unions showed an overall 0.3 percent loan increase in November. Credit unions saw market share in auto loans rise 0.4 percent, and savings balances rose 0.8 percent in November. The organization forecasts more than seven percent loan growth in 2014.
“We could see one of the best years in loan growth with a stronger economy and consumer confidence going up,” Rick said.