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Will home equity levels increase again this spring? What experts say

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Experts expect home equity levels to continue to rise this spring — and there are a few good reasons for it.

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Home equity levels have been on the upswing for quite a while. In fact, mortgaged homeowners have seen their home equity jump by more than 8% in just the last year alone, according to data provider CoreLogic. 

That uptick in home equity levels largely comes down to a low supply of houses for sale and continued demand from buyers. This drives up prices and home values — and, subsequently, owners’ equity stakes as well. In turn, the average homeowner currently has nearly $300,000 in home equity. 

That equity can be a valuable thing. It means more profits when you sell and, while you’re in the home, you can borrow from it using tools like home equity lines of credit (HELOCs) and home equity loans. And, the home equity and HELOC interest rates are often lower than the alternatives, making them a smart borrowing option for many homeowners.

Still, home equity isn’t set in stone, and as the market changes, home values and equity levels can, too. Here’s what could happen with home equity levels this spring, according to experts.

Compare your top home equity borrowing options online now.

Will home equity levels increase again this spring? What experts say

Are you considering using your home equity soon? Experts say home equity levels should continue to increase, and one reason for that is the simple law of supply and demand. 

The U.S. housing market has been short of supply for years — an issue that started when the 2008 housing crash caused homebuilders to pull back significantly. In fact, the country is currently about 3.2 million homes short of demand, according to one analysis.

“The driving trend is too much demand and not enough supply,” says Neil Christiansen, branch manager at Churchill Mortgage. “Until more homes are built and existing homeowners give up their ultra-low interest rate and put their home on the market, home appreciation should continue to see healthy gains throughout 2024 and beyond.”

But while those high interest rates have deterred some homebuyers, there has still been healthy demand in recent months. More than 4 million homes were sold in March alone, according to the National Association of Realtors. And, Fannie Mae predicts home sales to increase 4.2% this year.

“I expect a modest gain in equity this spring,” says Blake Blahut, a broker associate with Realty One Group Inspiration. “Instead of the several percentage points that many homeowners have enjoyed in recent years, I believe it might be more in the 1 to 2% range. While rates are high and the buyer pool is a little smaller, inventory remains relatively low, causing equity growth for most homeowners.”

Find out the top home equity borrowing rates you could qualify for here.

Interest rates are holding back sellers

High interest rates also play another role in propping up equity levels — this time, on the selling end.

“Many existing homeowners are deterred from trading up or downsizing because current mortgage rates have just about doubled for most of them,” says Christopher Gulotta, a clinical assistant professor at NYU’s Schack Institute of Real Estate. 

This, combined with rising home prices, essentially incentivizes homeowners from listing their properties, Gulotta says, only increasing the supply shortage.

Home prices are rising — and will continue to

Finally, home prices have been rising for many years — and that’s not expected to change any time soon. According to the Federal Housing Finance Agency’s House Price Index, home prices were up 7% between February 2023 and February 2024. Fannie Mae’s forecast projects about a 5% increase in prices across the year.

“There is no indication that we would see a slowdown anytime soon,” says Michael Micheletti, chief communications officer at home equity sharing company Unlock. “Since equity is directly related to home prices and values, this means homeowners’ equity is still increasing.”

The bottom line

You don’t have to wait around for home values to rise if you want more equity. Improving your house can help (as long as they’re projects that increase your home’s value), as can making extra payments on your mortgage loan.

“The easiest way to improve your home equity position is to apply additional principal to the monthly mortgage payment,” Christiansen says. “This decreases the loan balance and increases the overall equity balance in your favor.”

And if you do opt to use your home equity with a HELOC or home equity loan, make sure to shop around. Rates, terms, and fees can vary widely from one lender to the next.



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Floods, landslides struck parts of Bosnia as residents slept, leaving at least 16 dead and several missing

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A severe rainstorm struck Bosnia overnight Friday, killing at least 16 people in floods and landslides in several towns and villages in central and southern parts of the country, with surging waters rushing into people’s homes as they were sleeping.

Rescue services in the south said several people were missing and called on volunteers and the army to assist as roads were closed and houses left without electricity.

Josip Kalem, a resident of Fojnica, one of the towns hit by the floods, said his dog’s barking woke him up at around 4 a.m. When he came out on the terrace, he saw the water rising rapidly.

“I came down, woke up my wife, and we looked around, we could not get out of the house. We saw more and more water coming in,” he said. “All of a sudden, the water was flooding the garage, basement, my car — everything. The water swept it all away, including my dog. Flood took it downstream.”

Andja Milesic, another resident of Fojnica, also said she was caught by surprise in the middle of the night.

“When I woke up, my bedroom floor was already soaked. I walked into the hallway — water was everywhere — the living room, everywhere,” she said. “It was horrible.”

APTOPIX Bosnia Flooding
A car is submerged in flood waters outside an apartment building in the village of Kiseljak, northern Bosnia, Friday, Oct. 4, 2024.

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Darko Juka, a spokesman for the local administration, said at least 14 people had died in and around the southern town of Jablanica. Officials later said two more bodies have been found.

“Those are the ones who have been discovered by rescuers,” he said. “We still don’t know the final death toll.”

“I don’t remember such a crisis since the war,” Juka said referring to the 1992-95 war in Bosnia that left the country in ruins. “The scale of this chaotic situation is harrowing.”

Defense Minister Zukan Helez told N1 regional television that troops have been engaged to help and that the casualties were reported.

Helez said that “hour after hour we are receiving news about new victims. … Our first priority is to save the people who are alive and buried in houses where the landslides are.”

A pregnant woman lost her baby after she was rescued from the floods and transferred to a hospital in the regional center of Mostar. Authorities said doctors were fighting for her life as well. Separately, a child was successfully rescued and hospitalized, local officials said.

Rescue services in the towns of Jablanica and Kiseljak said the power was off overnight and mobile phones lost their signal.

The Jablanica fire station said that the town was completely inaccessible because roads and trainlines were closed.

“The police informed us that the railroad is also blocked,” the state rescue service said in a statement. “You can’t get in or out of Jablanica at the moment. Landline phones are working, but mobile phones have no signal.”

It urged people not to venture out on the flooded streets.

Human-caused climate change increases the intensity of rainfall because warm air holds more moisture. This summer, the Balkans were also hit by long-lasting record temperatures, causing a drought. Scientists said the dried-out land has hampered the absorption of floodwaters.

Bosnia Flooding
Apartment buildings are reflected at a flooded soccer field after a heavy rain in the village of Kiseljak, northern Bosnia, Friday, Oct. 4, 2024.

Armin Durgut / AP


Drone footage broadcast on Bosnian media showed villages and towns completely submerged under water, while videos on social networks showed dramatic scenes of muddy torrents and damaged roads.

One of the busiest roads linking Sarajevo with the Adriatic coast via Jablanica was swept into a river, together with a railway line in a huge landslide, according to photos.

“Many people are endangered because of big waters and landslides. There is information about victims and many injured and missing persons,” said the civic protection service.

Authorities urged people to stay on the upper floors of their homes. Reports said surging waters swept away domestic animals and cars as the water swiftly filled up lower floors of buildings.

The heavy rains and strong winds were also reported in neighboring Croatia, where several roads were closed and the capital of Zagreb prepared for the swollen Sava River to burst its banks.

Heavy winds have hampered traffic along the southern coast of the Adriatic Sea, and flash floods caused by heavy rain threatened several towns and villages in Croatia.

Floods caused by torrential rains were also reported in Montenegro, south of Bosnia, where some villages were cut off and roads and homes flooded.

In 2014, floodwaters triggered more than 3,000 landslides across the Balkans, laying waste to entire towns and villages and disturbing land mines leftover from the region’s 1990s war, along with warning signs that marked the unexploded weapons.



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The Uplift: Steve Gleason and more

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The Uplift: Steve Gleason and more – CBS News


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NFL legend Steve Gleason shares his experience with ALS in a heartfelt conversation with David Begnaud. A man whose life changed drastically in a split second is using the life-changing event to inspire others. Plus, more heartwarming stories.

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Eye on America: Inside an extreme sports camp, and a look at how libraries are innovating

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Eye on America: Inside an extreme sports camp, and a look at how libraries are innovating – CBS News


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In Pennsylvania, we visit a sleepaway camp that’s training the next generation of extreme sports stars. And in South Carolina, we see how public libraries are evolving to better serve the growing and diverse needs of its community members. Watch these stories and more on “Eye on America” with host Michelle Miller.

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