Home Equity Activity is Booming Nationwide

We're witnessing remarkable growth in home equity loan applications across the United States in 2025. National home equity originations jumped an impressive 19% in the first four months of 2025 compared to the same period in 2024, marking what industry experts are calling "the strongest start we've seen in years."

State-by-State Standouts

While this growth is happening nationwide, certain states are experiencing particularly dramatic increases:

·   South Dakota leads the pack with an extraordinary 140% surge in production, alongside a 51% increase in applications

·   Connecticut follows with a robust 60% growth in originations and 47% rise in applications

·   Missouri recorded a solid 47% increase in production with 33% more applications

·   Vermont and Arkansas also showed strong performance with 43% and 40% growth respectively

Even states like North Dakota and New Hampshire are seeing healthy application increases of 35% and 30% respectively.

What's Driving This Trend?

Current market conditions are creating a perfect storm for home equity originations. With first mortgage rates hovering between 6.75% and 7.25%, many homeowners who secured mortgages below 5% are finding it more attractive to tap their home equity rather than pursue cash-out refinancing options.

Home equity loan rates currently range from 6.75% to 14.125% APR, with factors like credit score, loan term, and loan-to-value ratio influencing individual rates. HELOCs are also offering competitive options, with some lenders providing introductory rates as low as 6.70%.

Looking Ahead

This sustained momentum in applications suggests continued strong demand throughout 2025. The data indicates that homeowners are increasingly viewing home equity as a strategic financial tool, particularly in today's rate environment.