Americans Tapped $47 Billion Home Equity in Q1 2026

Homeowners tapped an estimated $47 billion in home equity during the first three months of 2026, marking the highest first-quarter withdrawal figure since 2021. This data comes from a new report by Intercontinental Exchange (ICE) in their June 2026 ICE Mortgage Monitor. The report also indicates that approximately 3.9 million homeowners who secured a mortgage between 2020 and 2022 now hold a second lien on their property. This trend occurs amidst a persistent "lock-in effect" where homeowners, particularly those with low mortgage rates, are disinclined to sell their homes.

During the first quarter of 2026, an estimated 248,000 borrowers utilized second-lien loans and lines of credit to access their home equity, withdrawing approximately $25 billion. The remaining equity was accessed through cash-out refinances. This level of activity in home equity tapping has not been observed in five years. Senior economist at Realtor.com®, Jake Krimmel, suggests that in 2021, homeowners tapped equity due to rapidly appreciating home prices, low mortgage rates, and the ability to refinance for lower monthly payments while simultaneously increasing their home equity, leading to enhanced consumer purchasing power.

In contrast to previous periods, homeowners in 2026 appear more inclined to remain in their current residences rather than sell. This behavior is influenced by the ongoing housing shortage in America, estimated at 4.03 million units. The ICE report highlights that it is primarily new homeowners, rather than baby boomers, who are currently accessing their home equity. Andy Walden, head of mortgage and housing market research at ICE, stated that the housing market continues to be characterized by the "lock-in effect," with millions of homeowners choosing to stay put.