Market Watch: Home Equity Options Rise as Precious Metals Gain, Geopolitical Tensions Loom
Homeowners seeking affordable borrowing options found a potential avenue through home equity loans and HELOCs, while the price of silver continued its impressive climb, according to CBS News reports. Meanwhile, escalating tensions in the Middle East raised concerns about potential US military action against Iran, as reported by the BBC.
In an environment of elevated interest rates, home equity lines of credit (HELOCs) and home equity loans presented themselves as potentially more attractive alternatives to personal loans and credit cards, CBS News noted. The average equity level for homeowners sat comfortably over $300,000, making borrowing against home equity a viable option. This came as personal loan interest rates remained frozen around 12%, and credit card interest rates, while recently declining, still hovered near a record high of 23%.
Simultaneously, the price of silver experienced substantial growth, surpassing its January 2025 levels by more than 200%, CBS News reported. This surge mirrored the rise of gold, which has been viewed as a safe-haven asset amid inflation and economic uncertainty. "Gold is typically viewed as a safe-haven asset and inflation hedge," CBS News stated, noting its historical ability to hold value.
However, the global financial landscape faced potential disruption as the BBC reported on possible scenarios involving US military strikes against Iran. The report outlined seven potential outcomes, ranging from targeted strikes on military bases to broader regional conflict. According to the BBC, the US appeared "poised to strike Iran within days," raising concerns about the potential consequences. The BBC noted that potential targets included military bases of Iran's Islamic Revolutionary Guards Corps (IRGC) and the Basij unit.
The confluence of these factors – accessible home equity options, rising precious metal prices, and geopolitical instability – created a complex and dynamic environment for investors and homeowners alike.
Discussion
Join the conversation
Be the first to comment