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Article: Home equity loan volume drops in spite of attractive interest rates. (Special Report: Banks and Finance)
- Article from:
- Los Angeles Business Journal
- Article date:
- November 1, 1993
- Author:
CopyrightCOPYRIGHT 1993 CBJ, L.P. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Although a drop in interest rates usually spurs loan demand, consumers keep shying away from home equity loans in Los Angeles County because of plummeting property values and the rush to refinance, said Southland banking experts.
For the first six months of 1993, the outstanding balance of home equity loans was actually up 2 percent nationwide, but down nearly 1 percent in California, according to financial data from Sheshunoff Information Services Inc., a widely quoted database service based in Austin, Texas.
Banking experts note that since the recession struck the Southland in 1991, demand for home equity loans has dropped, even though interest rates have ...