It’s a great time to be a homeowner in Connecticut, at least when it comes to home equity loans.

According to a study by mortgage company LendingTree, Nutmeg State ranks third in the nation for largest home equity loans.

The average home loan in Connecticut is $112,721 with an average interest rate of 5.08% for an average monthly payment of $460, according to the study. This is well above the national average loan size of $83,872. It is also beaten only by Colorado, with an average loan size of $128,482 and Hawaii at $119,172.

The news comes as real estate tracking companies note that the nation’s scorching real estate market is starting to cool – but not in Connecticut.

“Although the nation’s housing market is starting to show signs of slowing, home prices in many parts of Connecticut still remain relatively high,” said Jacob Channel, senior economist at LendingTree. “As a result, many Connecticut homeowners — especially those who have owned their homes since before the pandemic — are able to borrow a significant amount of money against the equity they have built up in their homes.”

High loan amounts are directly linked to soaring house prices during the pandemic. Channel said it was good news if you owned a house. The rise has allowed homeowners to acquire significant amounts of home equity, even though they have not paid off much of their mortgage. Channel said the surge in home values ​​is concerning, but available equity is a positive result of an otherwise concerning real estate market.

These loans can help make ends meet as inflation and gas prices remain high. There has been hope for a slight respite from high prices as gas has fallen recently and President Joe Biden signed the Cut Inflation Act into law on Tuesday.

Channel said homeowners should always err on the side of caution, even if a big loan is available to them.

“Those who have borrowed against their home’s equity or are planning to do so should watch inflation closely and budget accordingly so they don’t miss their payments,” he said. “While you can tap into your home equity, you shouldn’t rush, especially if you’re unsure of your ability to meet your new payment.

Home prices in Connecticut are still relatively high compared to pre-pandemic levels. And while the market remains hot, data from LendingTree shows home inventory across the state is starting to rise, while new mortgages are falling. This means that buyer demand is decreasing, which could lead to a colder market.

“That doesn’t mean the state is on the verge of a housing meltdown,” Channel said. “Instead, it is more likely that the growth in house prices and the number of houses sold will bring prices back to more normal, pre-pandemic levels. This is good news, as it suggests that even if prices do fall, they are unlikely to fall as they did during the Great Recession of 2007.”

LendingTree collected data for its study by analyzing 355,887 home equity loans offered to users of the LendingTree platform in all 50 states nationwide from January 1 to July 20, 2022.