Home Equity Lending News

HELOC Holdings up 4 Consecutive Months at Commercial Banks

Commercial banks kept their feet on the accelerator during the final month of 2023 with their investments in revolving home-equity loans — pushing up their portfolios for the fourth consecutive time. But holdings have started to diminish during the first month of this year.

In the latest Federal Reserve Board report, Assets and Liabilities of Commercial Banks in the United States – H.8, there were $255.1 billion in home-equity lines of credit on the balance sheets of commercial banks as of December. The data is not seasonally adjusted.

Commercial banks are financial institutions that engage in various financial services like accepting deposits and making loans.

An increase in HELOC holdings was recorded from November, when the total held by the financial institutions came to $254.4 billion.  December marked the fourth month in a row that holdings have increased.

But the banks have reduced their holdings from December 2022, when the balance was $256.7 billion.

More recently, as of the week ended January 17, 2024, commercial banks owned $254.7 billion in HELOCs, according to the Fed’s data.