Debt consolidation has emerged as the dominant driver of home equity borrowing and a key theme that loan officers reported — 81% of loan officers told HomeLight that they’ve seen a spike in homeowners borrowing against their equity, with 29% qualifying this as a significant increase and 52% calling it a slight increase.
In 2025, 87% of loan officers told HomeLight that debt consolidation was the main reason borrowers accessed their equity through home equity lines of credit (HELOCs). The figure was a nearly identical 88% in 2024.
At the same time, many borrowers are waiting for mortgage rates to fall further before making a move. More than one-third of lenders said buyers remain fixated on the possibility of rates dropping to…