Accurate Group, a provider of technology-driven real estate appraisal, title data, analytics, and e-closing solutions, released its 2023 U.S. Housing Equity Loan Survey, designed to capture homeowner intentions and tolerance for engaging in real estate lending over the next 12 months – with specific attention on how homeowners plan to leverage home equity.

Survey questions focused on the likelihood of homeowners applying for a home equity line of credit or loan, refinance an existing mortgage or take out a reverse mortgage.

The survey found that just over a quarter (26 percent) of homeowners are very likely or likely to borrow against their home equity in the coming year. More than half (51 percent) of homeowners responded that they are unlikely or very unlikely to borrow against their home equity. Twenty-three percent said they were neutral or unsure.

Over 70 percent of homeowners indicated that they plan to take out a home equity loan or line of credit (HELOC). Of the reasons given for why the surveyed homeowners were planning to take out a HELOC, over one-third (35 percent) stated it was for home improvements, 15 percent for a major purchase, and 13 percent to pay off high interest loans.

Nearly one-third (31 percent) of homeowners indicated plans to refinance a mortgage, and 7 percent stated plans to take out a reverse mortgage.

“Higher mortgage rates, record levels of home price appreciation, constrained housing inventories and economic inflation are challenging for both lenders and borrowers,” Paul Doman, president and CEO of Accurate Group, said. “We conducted this survey to give lenders, loan services and originators better insight into homeowner sentiment to help them plan appropriately and identify strategic opportunities for loan volume growth. This report sheds light on what lenders could expect in the next 12 months as they navigate the evolving real estate market.”