Signaling growing confidence in housing new home equity revolving lines of credit totaled more than $44 billion year-to-date through July 2012 a three-year high - according to Equifax's October National Consumer Credit Trends Report. Revolving home equity credit experienced a 9 percent increase from the recession low for the same period set in 2010 of $40.6 billion.

In addition write-off rates among home equity revolving lines fell 1.3 percent in September to 2.15 percent the lowest level since April 2009.

Other highlights from the most recent data include:

Home Equity Revolving
The number of new revolving home equity lines of credit year-to-date through July 2012 stood at 495000 a three-year high though more than 76 percent lower than the seven-year high of more than 2 million through July 2006.
Home equity revolving lines of credit fell 20 percent to $537 billion in September 2012 after peaking at $680 billion in May 2009.
Since November 2007 the total number of home equity revolving accounts has declined more than 34 percent from 14.7 million to 11 million in September 2012.

First Mortgage
The total balances of severely delinquent mortgages through September 2012 ($419 billion) have decreased 41 percent since peaking in March 2010 ($714 billion). Of note is that more than 76 percent of severely delinquent balances among home equity revolving credit balances are sourced from originations between 2005-2007.
First mortgage balances of $7.85 trillion in September 2012 decreased 3.4 percent from the same month a year ago.
Severely delinquent balances among agency sourced first mortgages (FHA Fannie Mae and Freddie Mac) have fallen more than 13 percent to $125 since peaking in March 2010 ($145 billion). In that same time however non-agency sourced (private investors and banks) first mortgage balances showed a 48 percent decrease.
First mortgages opened between 2005-2007 comprise 68 percent of severely delinquent mortgage balances yet they represent just less than 27 percent of all first mortgages outstanding.

"Increasing new home equity revolving credit indicates homeowner confidence and momentum towards an improved market" said Craig Crabtree senior vice president and general manager Equifax Mortgage Services. "While the levels are significantly lower when compared to pre-recession peaks the recent stability has given way to consistent growth. Total first mortgages are still contracting however the decreasing debt and delinquencies are positive signs of a stable foundation towards recovery."

Source: Equifax