U.S. Homeowners Tap Billions in Housing Wealth as Equity Levels Remain Near Record Highs

American homeowners are increasingly turning to their housing wealth for additional cash, with home equity withdrawals reaching an estimated $47 billion during the first quarter of 2026, according to a new report from Intercontinental Exchange (ICE). Although slightly below the $49 billion recorded in the final quarter of 2025, the figure represents the strongest first-quarter performance since 2021 and highlights the continued appeal of home equity borrowing.

The trend comes as millions of homeowners remain locked into low mortgage rates secured during the pandemic-era housing boom. Rather than refinancing into today’s higher interest-rate environment, many borrowers are choosing to access their home equity through second-lien products such as home equity lines of credit (HELOCs) and home equity loans.

According to ICE, HELOCs and home equity loans accounted for 54% of all equity withdrawals during the quarter, while the remainder came from cash-out mortgage refinancing. Nearly two-thirds of second-lien borrowers currently hold mortgages that originated between 2020 and 2022, when average mortgage rates ranged from 3% to 4%.

The phenomenon reflects what housing analysts describe as the “lock-in effect.” With current 30-year fixed mortgage rates hovering above 6.5%, many homeowners are reluctant to refinance and lose their significantly lower existing rates. Instead, borrowing against accumulated home equity offers a way to access funds while preserving favorable mortgage terms.

Home price appreciation over the past several years has played a major role in expanding homeowners’ borrowing power. The median price of an existing U.S. home reached $429,300 in May, representing a modest 1.3% increase from a year earlier. More notably, prices remain more than 50% higher than they were in May 2020, when the median home sold for $284,600.

As a result, homeowners now collectively hold an estimated $11 trillion in tappable home equity, according to ICE. That substantial wealth cushion has created opportunities for borrowers to finance renovations, consolidate debt, cover education expenses, or meet other financial needs.

While rising equity levels continue to strengthen household balance sheets, financial experts caution that borrowing against home equity should be approached carefully. As homeowners gain greater access to their accumulated wealth, the challenge will be balancing financial flexibility with long-term financial security in a higher-rate environment.