The home equity market is experiencing significant growth, with an increase in securitization deals backed by home equity products [0a9748f7]. These products include home equity lines of credit (HELOCs), closed-end second mortgages (CESs), and shared-equity contracts. The market for shared-equity contracts, also known as home equity investments (HEIs) or home equity agreements (HEAs), is expected to expand further [0a9748f7].
One recent notable development in the home equity market is the Saluda Grade-sponsored rated offering, which represents the sixth securitization deal backed by shared-equity contracts, valued at $1.3 billion [0a9748f7]. This demonstrates the increasing popularity and acceptance of shared-equity contracts as a mainstream asset class that attracts a wider range of investors.
In addition to shared-equity contracts, the traditional home equity sector of HELOCs and CESs is also experiencing positive trends. The securitization market for these products has seen a total of 20 deals valued at $4.8 billion, with 10 deals issued this year [0a9748f7]. This indicates a growing interest in these types of home equity products.
The growth in the home equity market can be attributed in part to the increase in home prices. Total home equity nationwide has reached $16 trillion, with tappable equity standing at $10.5 trillion [0a9748f7]. This increase in home equity provides homeowners with more financing options and attracts investors looking for opportunities in the housing market.
Overall, the home equity market is experiencing a surge in growth, driven by securitization deals backed by home equity products such as shared-equity contracts, HELOCs, and CESs. This growth is expected to continue, attracting more investors and providing better financing options for homeowners [0a9748f7].