There’s plenty of home equity available to homeowners but interest rates are constraining originations of home equity loans. Banks remained the top three originators of home equity loans in the third quarter. (Includes three data tables.)

The share of borrowers using discount points has more than doubled since 2020. The use of discount points is more common among nonbanks.

On the surface, the yield looks expensive for the issuer but in a rising interest rate environment, maybe it’s not.