The total number of new home equity revolving loans is 71,600, an increase of 10% from same time a year ago, according to the latest Equifax (EFX) National Consumer Credit Trends Report.
The balance of newly originated home equity revolving loans was up 18.4%, from $6.2 billion to $7.3 billion.
The total outstanding balance of existing HELOCs in March 2014 decreased 6.5% from same time a year ago, the report says.
Of total severely delinquent balances, 69% are from loans originated from 2005-2007.The total balance of severely delinquent loans in March 2014 is slightly more than $8 billion, a five-year low.
"Spring is here and consumers' desire for credit appears to be rising alongside the mercury," said Amy Crews Cutts, chief economist at Equifax. "Despite the relatively low numbers of new and used vehicles sold in January, auto originations were up nearly 20 percent from the same time last year. This suggests that consumers are responding positively to the generous terms and greater credit availability in the auto space.
“Credit card and Home Equity Revolving Lines of Credit originations were also up sharply over the previous year, further signaling that not only are consumers interested in credit, but that banks are more willing to offer it," she said.
Changes in the total balance of new credit originated January 2013-2014 include:
- Bank-issued credit cards: 28.5% increase ($15.2 billion to $19.5 billion);
- Home equity revolving: 18.4% increase ($6.2 billion to $7.3 billion); and
- Auto: 19.8% increase ($28.6 billion to $34.3 billion).
(Last month as a joke we said you no longer see home equity lines of credit, anymore – mea culpa.)