US mortgage holders carried a record $17.6 trillion in home equity at the end of the first quarter, according to a data report from ICE Mortgage Technology. Of that amount, $11.5 trillion was considered “tappable” (available for borrowing while maintaining at least a 20% equity cushion).
During the first quarter, second lien equity withdrawals totaled nearly $25 billion, a 22% surge from one year ago and the largest first quarter volume in 17 years.
“Equity levels remain historically high, and now we’re seeing the cost of borrowing against that equity drop meaningfully,” said Andy Walden, head of mortgage and housing market research at ICE. “The monthly payment needed to withdraw $50,000 via a home equity line of credit (HELOC) has fallen by more than $100 since early 2024. If the Fed moves forward with anticipated rate cuts, borrowing against home equity could become even more attractive in the second half of the year.”
The new data report also found the average introductory rate on second lien HELOCs dropped below 7.5% in March. The report predicted that HELOC rates could dip into the mid-6% range by 2026 if current market conditions hold steady.
The report also found 48 million mortgage holders have tappable equity, with the average homeowner sitting on $212,000. Mortgaged homes are, on average, were only 45% leveraged, and borrowers only tapped 0.41% of available tappable equity in the first quarter.
Tim Bowler, president of ICE Mortgage Technology, observed that “roughly 25% of homeowners said they are considering a home equity loan or HELOC in the next year. It’s periods like these — where both demand and affordability trends converge — that represent a critical opportunity for housing finance professionals to earn homeowners’ repeat business.”
