California Home Equity Loan Trends

The home equity loan trends in California are verypercent.
reflective of the overall success of home equity as anConservative analysts expect some bumps on the
industry in the United States. The market is becomingroad, but they won't be enough to derail the home
very ideal as more and more lenders are lowering theirequity lending industry. California borrowers may see a
interest rates, and more and more people are availingslight rise in short-term interest rates, but long-term
of home equity loans.rates - the bulk of the business - is likely to stay low.
The home equity lending business in California isSome declines are projected to hit by the end of 2006,
booming. In fact, in 2004, more than one million peoplebut growth rates will still be in the double-digits.
(1,199,829 to be exact) availed of the loan. The trend isAnalysts are also worried about the continued rise in
especially popular in the Orange County area, whereCalifornia real estate prices, while wages in the state
more than 120,000 individuals took advantage of theremain stagnant. Less people may be able to afford
low interest rates and liberal approval. California homehomes, and this may shrink - though not severely - the
equity lending companies lent a total of $129.8 billionhome equity loan market. But this trend is not likely to
during the year averaging a little over little overdent the already well-founded industry. Lending
$108,000 per loan.companies are relying on the time-tested formula they
Analysts expect this trend to continue, and if it does,have always used - talk to people about how they
the loan count will grow at about 6.8 percent annually,can profit from the loan window, and they will avail of
and total amount lent will grow by about 22 percent.it.
Even the average loan size may increase by about 14