While many people are expecting Federal Reserve cuts, home equity lines of credit (HELOC) are expected to follow the reserve more closely and increase renovations and improvements.
Home Depot and Lowe’s analysts estimate there is roughly $50 billion in pent-up demand for home improvement work. These are projects that homeowners have put aside while borrowing costs stayed high across loans and materials. Lower HELOC rates could provide homeowners with the funds to funnel directly into their new kitchens, bathrooms or addictions.
This comes at a time where the new housing market is softer across all fronts. However many hope this cut will spark a spending boom that will impact all areas of housing and development.
“A single Fed cut won’t thaw the sales market overnight, but it could still act as a powerful catalyst by channeling money into home improvements instead. That money, in turn, could be a lifeline for the housing market of tomorrow.” said Allaire Conte at Realtor. Â
