think this is the end at all. Mary Berg notes, “Home equity loans have been growing at a large clip for years. It’s definitely slowed, but people are sIn states like California there has been a decline during the last four months in home equity loans and home equity lines of credit. Many analysts are blaming the fall in equity loans on the languishing home values and rising interest rates. Rates have risen to around the 8 percent range and look as though the Federal Reserve is likely to continue raising the rate. Some economists feel that this will spell the end of the home equity loan boom. Christopher Thornberg, senior economist of UCLA’s Anderson Forecast warns, “Keep an eye out. It’s going to get worse and worse.” However, other experts don’t think this is the end at all. Mary Berg notes, “Home equity loans have been growing at a large clip for years. It’s definitely slowed, but people are stblaming the fall in equity loans on the languishing home values and rising interest rates. Rates have risen to around the 8 percent range and look as though the Federal Reserve is likely to continue raising the rate. Some economists feel that this will spell the end of the home equity loan boom. Christopher Thornberg, senior economist of UCLA’s Anderson Forecast warns, “Keep an eye out. It’s going to get worse and worse.” However, other experts don’t think this is the end at all. Mary Berg notes, “Home equity loans have been growing at a large clip for years. It’s definitely slowed, but people are sough the Federal Reserve is likely to continue raising the rate. Some economists feel that this will spell the end of the home equity loan boom. Christopher Thornberg, senior economist of UCLA’s Anderson Forecast warns, “Keep an eye out. It’s going to get worse and worse.” However, other experts don’t think this is the end at all. Mary Berg notes, “Home equity loans have been growing at a large clip for years. It’s definitely slowed, but people are sopher Thornberg, senior economist of UCLA’s Anderson Forecast warns, “Keep an eye out. It’s going to get worse and worse.” However, other experts don’t think this is the end at all. Mary Berg notes, “Home equity loans have been growing at a large clip for years. It’s definitely slowed, but people are sthink this is the end at all. Mary Berg notes, “Home equity loans have been growing at a large clip for years. It’s definitely slowed, but people are still borrowing. They’re finding other products that are more flexible in this rate environment.”

Although many homeowners are likely to rethink using home equity loans for home improvement until the interest rates begin to drop again, there is likely to be a rise in the consumer use of a cash out second mortgage or a line of credit for the purposes of debt consolidation. With the increase in interest rates, many consumers are finding themselves stressed with bigger credit card payments. Borrowers that have a fixed rate mortgage on their homes would be better off leaving their 1st mortgage loan