**Homeowners Leverage Escalating Home Equity for Loans and Renovations**

American homeowners are increasingly tapping into their growing home equity, despite high interest rates. This trend is fueled by a remarkable increase in home values, which has consequently boosted home equity levels. Home equity, defined as the difference between a home's market value and the outstanding mortgage balance, has surged notably. As per recent data from property analytics firm CoreLogic, the average homeowner with a mortgage now possesses roughly $315,000 in home equity, an increase of nearly $129,000 since the beginning of the COVID-19 pandemic in 2020.

"The substantial rise in home equity means homeowners have a significant financial cushion," noted Greg McBride, the chief financial analyst at Bankrate. This accumulation of home equity is now fostering increased borrowing activity among homeowners.

Home Equity Lines of Credit (HELOCs), a form of second mortgage that allows homeowners to use their equity as collateral, have seen a 20 percent increase in balances since 2021, according to the Federal Reserve Bank of New York. This upward trend underscores the growing reliance on HELOCs by homeowners aiming to finance home improvements or consolidate debt.

In addition to HELOCs, home equity loans, which feature fixed interest rates and set monthly payments, have also experienced a notable rise. CoreLogic pointed out in a report earlier this month that the volume of home equity loans surged in the first half of this year. This surge might be attributed to the relatively lower average rates on these loans compared to those on lines of credit.

Selma Hepp, the chief economist at CoreLogic, emphasized the role of increased home equity as a financial safeguard. In her September report, she stated that the rise in home equity "has served as an important financial buffer in times of uncertainty."

This trend showcases how American homeowners are leveraging their home equity to manage finances, especially in an environment marked by economic unpredictability.