Article: As Refis Flagged, Banks and Thrifts Stocked Up on Home Equity Loans.

Bank and thrift companies increased their holdings of home equity loans 26%, to $176.5 billion, in the 12 months that ended June 30, according to American Banker research.

The increase was even bigger for the top 100 banks and thrifts. Their portfolios of second mortgages and home equity lines of credit jumped 28%, to $163 billion.

Experts said the boost was largely driven by this year's rise in interest rates. According to Freddie Mac, the average 30-year fixed mortgage rate in the second half of 1998 was 6.82%; in the first half of this year it was 7.05%. That has heightened demand for home equity products among consumers who might otherwise have ...

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