Why Equity is Winning Right Now!
Written by Samantha Scherr | VP of Mortgage Lending with Origin Point
Rate Rollercoaster
The Iran War recently pushed oil prices higher in March and April, which increased inflation and drove mortgage rates up into the 6.5% range, vs the 5.99% rates we saw earlier this year. In response, the Federal Reserve has remained cautious, holding off on rate cuts to avoid adding further increases in inflation. As the geopolitical tensions begin to decrease, mortgage rates have most recently been improving again, settling back into the 6.00% range. Refinance activity remains strong, up over 15% year over year, while purchase demand is up a more modest ~1%.
Equity is Winning in Today’s Market
According to the National Association of Realtors, 42% of homebuyers in 2026 are baby boomers. Many of these seniors are using equity from homes they’ve owned for years, which allows them to make stronger, often cash-heavy offers and makes them less sensitive to higher interest rates. Meanwhile, millennials—many of whom are first-time buyers—are still active but are facing affordability challenges due to higher home prices and mortgage rates.
If you are thinking about buying a new home but don’t want to sell investments and trigger a big tax bill, here are some options to consider:
- A home equity line of credit (HELOC) can help you unlock equity from your current home – cash received on a HELOC is tax free and does not require a reassessment
- Use that equity for your down payment on the new home—without liquidating retirement accounts
- If you are retired, and have assets in the bank, you can use these assets as income to qualify for a loan without actually liquidating your assets.
There may be a simpler, more cost-effective path than you think. Reach out to me and let's chat about your options!
Samantha Scherr | 310.968.4046 | [email protected]
