HELOC balances increased by $23 billion during the third quarter of 2026, reaching $481 billion nationwide, according to the New York Fed’s Household Debt and Credit Report. It was the largest quarterly increase since 2005 and the 18th consecutive quarterly rise.

The $481 billion figure represents outstanding balances reported on consumer credit records. It does not mean lenders issued $23 billion in new HELOCs during the quarter. The New York Fed separately reported that total HELOC credit limits rose by $31 billion.

The national trend may interest New Jersey homeowners considering how to pay for home improvements, education or other major expenses. But national figures do not show how much New Jersey residents borrowed or how local home values are changing.

What rising HELOC balances may mean for New Jersey homeowners

A home equity line of credit, or HELOC, lets a homeowner borrow repeatedly against available equity, up to a lender-approved limit. That access can be useful, but it adds debt secured by the home.

Many HELOCs have variable interest rates, so payments may change over time. When the draw period ends, borrowers enter the repayment period, when monthly payments may increase. If a borrower cannot repay, the home may be at risk. The Consumer Financial Protection Bureau explains how HELOCs work and what borrowers should consider.

For New Jersey buyers, an existing HELOC payment may also be relevant when reviewing a household budget or discussing mortgage options with a lender. The national increase alone does not determine an individual borrower’s eligibility or the best financing choice.

Key considerations before using home equity

Before opening or drawing on a HELOC, consider:

• Whether borrowing is necessary and how it compares with other funding options.
• How the interest rate, fees and monthly payments could change under the loan terms.
• When the draw period ends and what payments will be due during repayment.
• Whether you could manage the payments if your income or home value changes.

For more general guidance, visit our New Jersey real estate information hub. Homeowners should review the specific terms with their lender and consider how borrowing fits their long-term financial plans.