ConsumerCredit News & Analysis
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Market Mood
HELOC Balances Jump $23B in Q3, Highest Since 2005 - NY Fed Report
Homeowners increased their home equity lines of credit (HELOC) balances by $23 billion in the third quarter, the largest rise since 2005, according to the Federal Reserve Bank of New York. This brings total outstanding HELOC balances to $481 billion, marking the 18th consecutive quarterly increase. HELOC balances peaked at about $714 billion in early 2009. The rise in HELOC borrowing comes amid a sluggish housing market and a mortgage rate lock-in effect, where 49.1% of outstanding mortgages had rates at or below 4% in the second quarter. Many homeowners avoid refinancing at higher current borrowing costs. The median existing home price was $417,500 in September, about 54% higher than in 2019, while the average 30-year mortgage rate stood at 7.3%. Homeowners tap HELOCs to access equity without losing their low mortgage interest rates. Mortgage holders had $17.5 trillion in home equity in the third quarter, with tappable equity rising 1.2% year-over-year to $204,000 per borrower on average. The average HELOC rate is 7.49% and typically has a variable interest rate tied to benchmarks influenced by Federal Reserve policy. This information matters as rising HELOC usage may affect household spending and borrowing costs amid higher interest rates.
Read More: HELOC Balances Jump $23B in Q3, Highest Since 2005 - NY Fed Report
Pagaya (PGY) Closes $800 Million Personal Loan ABS Transaction
On June 15, 2026, Pagaya Technologies Ltd. (PGY) closed an upsized $800 million AAA-rated personal loan ABS deal, named PAID 2026-4, which attracted 39 unique investors. This transaction increased Pagaya's year-to-date personal loan ABS issuance to nearly $4 billion and marked its third upsized personal loan ABS deal this year. Since 2018, the company has issued a total of $40 billion across 91 ABS transactions. Additionally, Texas Capital initiated coverage of PGY with a 'Buy' rating and a $27 price target, highlighting its AI technology-enabled business model in consumer credit underwriting.
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Mortgage Delinquency Rate Reaches 4.8% in October 2025, Highest Since April 2020
As of October 2025, the mortgage delinquency rate in the U.S. stands at 4.8%, the highest since April 2020. Delinquencies for 60 days and 90 days also reflect an upward trend, recorded at 2.4% and 1.6%, respectively. In the realm of student loans, severe delinquencies (90 days or more) saw a significant increase from 0.8% in October 2024 to 10.9% by April 2025, with the current rate at 11% as of October 2025. These rising delinquency rates could negatively impact consumer credit scores and borrowing costs, indicating potential stress in consumer financial health.
Read More: Mortgage Delinquency Rate Reaches 4.8% in October 2025, Highest Since April 2020