Weekly Real Estate News
U.S. homeowners held an estimated $13.2 trillion in accessible home equity in the second quarter of 2026, a record in First American Data & Analytics’ historical series. But most of that equity sits with borrowers whose existing mortgage rates are lower than prevailing rates, complicating decisions to refinance, move or tap housing wealth.
In its inaugural Accessible Home Equity & Mortgage Rate Lock-In Trends Report released October 28, First American estimated that $11.6 trillion, or about 88% of accessible equity, belonged to homeowners with mortgage rates below the prevailing national average 30-year fixed rate of 6.49% at the end of June.
What accessible equity measures
The company defines accessible equity as the estimated portion of a homeowner’s equity that could be borrowed while keeping combined loan-to-value at or below 80%. It is not cash already withdrawn, a guarantee of loan approval or a measure of how much homeowners will borrow.
Total accessible equity increased 1.9% from the first quarter and 1.5% year over year. Locked-in accessible equity rose 3.2% quarter over quarter but declined 2% from the second quarter of 2025.
Mortgage rates constrain mobility
The report measures rate lock-in by comparing borrowers’ existing first-mortgage rates with the prevailing benchmark. Among locked-in accessible equity, First American classified 87% as severely or extremely locked in.
The percentages describe the share of estimated equity associated with those borrowers, not the share of all homeowners or all outstanding mortgages. A homeowner with a low-rate mortgage may still access equity through a second lien or home equity line of credit, depending on underwriting and market conditions.
Regional differences
First American found that 98% of South Dakota’s accessible equity was held by rate-locked borrowers, followed by Washington at 93.3%, Wisconsin at 92.4%, Colorado at 92% and Minnesota at 91.9%. California registered 91.7%, while Connecticut was among the lowest at 74.6%.
The figures suggest that mortgage-rate lock-in is not limited to the largest coastal housing markets. It also affects states where homeowners accumulated equity while holding comparatively inexpensive first mortgages.
The report’s historical series begins in 2005 and is reconstructed using current data and methodology. Its latest estimates cover the second quarter, not conditions as of the October 28 release date.
Primary source: First American Data & Analytics, October 28, 2026.
