Politics and Government Politics and Government
Fri, April 25, 2025
Thu, April 24, 2025
Wed, April 23, 2025
Tue, April 22, 2025
Mon, April 21, 2025
Sun, April 20, 2025
Sat, April 19, 2025
Fri, April 18, 2025
Thu, April 17, 2025
[ Thu, Apr 17th ] - Politico
House headed home
[ Thu, Apr 17th ] - rnz
Pacific briefs for 17 April
Wed, April 16, 2025
Tue, April 15, 2025
Mon, April 14, 2025
Fri, April 11, 2025
Thu, April 10, 2025
Wed, April 9, 2025
[ Wed, Apr 09th ] - Townhall
Time to Kill NPR and PBS
Tue, April 8, 2025
Mon, April 7, 2025
Sun, April 6, 2025
Sat, April 5, 2025
Fri, April 4, 2025
Thu, April 3, 2025
Mon, March 31, 2025
Sun, March 30, 2025
Sat, March 29, 2025
Fri, March 28, 2025

Home equity could be a $35 trillion lifeline for Americans if recession strikes. Here's what to know.


//business-finance.news-articles.net/content/202 .. ns-if-recession-strikes-here-s-what-to-know.html
Published in Business and Finance on Sunday, March 30th 2025 at 16:21 GMT by Insider   Print publication without navigation

  • The pandemic-era housing boom swelled Americans' home equity to record levels. Tapping into that could prop up the consumer and the economy in a slowdown.

The article from Business Insider discusses the potential economic implications of homeowners tapping into their home equity through Home Equity Lines of Credit (HELOCs) as the housing market cools. It highlights that with rising home values over the past few years, many homeowners have significant equity in their homes, which they could use to fund consumption or investments. However, this trend could lead to increased consumer spending, potentially staving off a recession by boosting economic activity. Conversely, if homeowners use this equity to finance large purchases or investments that do not yield returns, it might contribute to economic instability. The article also notes that while HELOCs can provide liquidity, the variable interest rates associated with them could become burdensome if rates rise, potentially leading to financial strain for borrowers. This scenario could exacerbate economic downturns if widespread, as it might coincide with a softening housing market, where declining home values could leave homeowners with negative equity.

Read the Full Insider Article at:
[ https://www.businessinsider.com/home-equity-heloc-housing-market-consumer-spending-recession-real-estate-2025-3 ]

Publication Contributing Sources