Home equity borrowing has decreased sharply this quarter, with fewer borrowers taking out new lines or withdrawing from their current HELOCs.

Forbes.com reports:

“Mortgage equity withdrawal (MEW) is collapsing from the $700 billion annualized in 2005 to less than $20 billion in the second quarter of this year. Thus, with falling housing wealth and collapsing MEW, U.S. households cannot use their homes anymore as ATM machines.”

Many borrowers are continuing to experience home equity shrinkage while lenders continue monitoring for potential HELOC freezes.

See Also: 

Don’t Rely on a Home Equity Line to Save You From the Crisis

Are Lenders Freezing Home Equity Lines Illegally?

Tags | Heloc, heloc freeze, home equity line of credit