The number of U.S. households with home equity loans reached 9 million in 1997, according to a report released by the University of Michigan's Survey Research Center.

The report, conducted from May to October 1997, found the percentage of homeowners with either a traditional home equity loan or a home equity line of credit was 13 percent, just two percentage points higher than the 11 percent of homeowners with home equity loans in 1988.

But, with an increase in U.S. households and homeowners in the decade, the total number of home equity borrowers increased 38 percent, from 6.5 million in 1988 to 9 million in 1997.

Home improvements were the most common use for both traditional home equity loans (50 percent) and home equity lines of credit (69 percent).

Vehicle purchases were the next most common use, with 39 percent of equity lines and 20 percent of fixed-rate equity loans used for that purpose.

The median amount on home equity lines of credit and on fixed-rate loans was $15,000.

Pub Date: 11/22/98