Consumers reducing borrowing with home equity loans.

According to the Wall Street Journal, consumers have reduced their demand for home equity loans, probably because they are concerned about the market value of their homes.

For the first time since 1999, outstanding borrowing on home equity loans dropped in the six months ending in March, 2007. Of course it’s still $561 billion, a signifciant amount of outstanding debt.

The housing bubble has clearly burst and the impact is being felt.

For mortgage basics click here.

Comments are closed.