Data from the Federal Reserve Bulletin Statistical Supplement, July 2006 shows clearly how the Fed’s string of rate increases has put the brakes on HELOC loan growth:

After many months of year-over-year growth, total HELOC loans outstanding at commercial banks fell during June ($428.9 billion) below the level of June 2005 ($431.4 billion).

The good news for borrowers is that lenders still love HELOCs because they are one of the least risky forms of consumer lending. The fall-off in demand means lenders are more competitive in ever in attracting and retaining HELOC borrowers. Use this information to your advantage. Don’t be shy about asking for a better rate, fee waivers, or other lender concessions.

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