2023 U.S. Home Equity Loan Survey gauges homeowner intent for engaging in real estate lending during economic uncertainty
CLEVELAND, OHIO – May 11, 2023 – Accurate Group, a leading provider of technology-driven real estate appraisal, title data, analytics, and e-closing solutions, today released its 2023 U.S. Housing Equity Loan Survey. The survey was sent to 1,000 consumers across the nation in Q1 2023, designed to capture homeowner intentions and tolerance for engaging in real estate lending over the next 12 months – with a specific focus on how homeowners plan to leverage home equity. Survey questions centered around the likelihood of homeowners to apply for a home equity line of credit or loan, refinance an existing mortgage or take out a reverse mortgage.
The survey results provide lenders, loan servicers and originators with critical insights into borrowers’ plans to participate in the real estate lending market during this time of global economic uncertainty and high interest rates.
Key findings of Accurate Group’s 2023 U.S. Home Equity Loan Survey include:
- 26% of homeowners are very likely or likely to borrow against their home equity in the next 12 months; 51% are unlikely or very unlikely to borrow against their home equity; 23% are neutral.
- 71% of homeowners plan to take out a home equity loan or line of credit (HELOC)
- 31% of homeowners plan to refinance a mortgage
- 7% of homeowners plan to take out a reverse mortgage
- Top 3 reasons homeowners are taking out a HELOC
- 35% for home improvement
- 15% for a major purchase
- 13% to pay off high interest loans
- Four biggest factors impacting a decision to borrow against equity
- 50% interest rate of the loan
- 40% amount of equity available to borrow against
- 35% performance of financial investments
- 41% job security
“Higher mortgage rates, record levels of home price appreciation, constrained housing inventories and economic inflation are challenging for both lenders and borrowers,” said Paul Doman, president and CEO of Accurate Group. “We conducted this survey to give lenders, loan services and originators better insight into homeowner sentiment to help them plan appropriately and identify strategic opportunities for loan volume growth. This report sheds light on what lenders could expect in the next 12 months as they navigate the evolving real estate market.”
For the full breakdown of key findings, contact Accurate Group for a copy of our 2023 Home Equity Survey Infographic.
About Accurate Group
Accurate Group is a real estate technology and services leader delivering technology-driven property appraisal, title data, analytics and digital closing solutions to banks, credit unions, servicers, non-banks, and capital market firms. By combining modern process automation, accurate data and innovative SaaS and mobile technologies, Accurate Group provides its clients with the best combination of speed, quality, regulatory compliance, and price. With Accurate Group, the real estate finance community and consumers benefit from market-leading solutions that enable modern digital frameworks, improve accuracy, lower costs, and improve compliance across all types of real estate loans, mortgage-related assets and real estate portfolios. Visit www.accurategroup.com.