According to data released today by RealtyTrac, 797,865 HELOCs were originated in the 12 months ending in June 2014. That represents a rise of nearly 21% above the previous 12 months and the highest level since June 2009. At the peak, U.S. homeowners in 2005-2006 originated 3.3 million HELOCs.
HELOC originations accounted for a more than 15% of all loan originations in the first 8 months of 2014, the highest percentage since 2008. The 5 metro areas with the biggest jumps in HELOC originations year-over-year were Riverside-San Bernardino-Ontario, CA (up 88%), Las Vegas-Paradise, NV (UP 85%), Cincinnati-Middletown, OH-KY-IN (up 81%), Sacramento–Arden-Arcade–Roseville, CA (up 65%), and Phoenix-Mesa- Scottsdale, AZ (UP 60%).
The 5 metro areas with the smallest year-over-year increases in HELOC originations were Minneapolis-St. Paul, MN (up 0.2%), Louisville, KY (up 3.3%), Philadelphia, PA (up 3.6%), Virginia Beach, VA (up 4.3%), and St. Louis, MO (up 5.6%).
The 5 metro areas with the highest share of HELOC originations as a percentage of all loan originations to date in 2014 are Honolulu, at 43.5%, followed by Rochester, NY (38.7%), Buffalo, NY (32.1%), Cleveland, OH (28.5%), and Milwaukee, WI (27.5%).
The 5 metro areas with the lowest share of HELOC originations as a percentage of all loan originations to date in 2014 is Las Vegas (5.8%), Dallas (6.5%), Riverside-San Bernardino (7.7%), Houston (7.9%), and Tucson (8%).