[REVISION HISTORY]

U.S. home equity availability and usage

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2026-09-30 22:17 UTC → 2026-10-08 00:49 UTC · added ~~removed~~

U.S. homeowners hold significant untapped wealth, with total home equity reaching approximately $17.9 trillion as of the second quarter of 2026. Of this, $11.5 trillion is classified as “tappable” equity that can be accessed while meeting lender requirements. The average homeowner with a mortgage holds roughly $310,000 in equity, an increase of $6,000 from the previous quarter, driven by multi-year home price appreciation. Despite these record levels, utilization remains low; less than 0.1% of eligible homeowners utilized these funds in the second quarter of 2026. While HELOC and second mortgage originations rose by nearly 20% between the first and second quarters, economists suggest homeowners are reluctant to tap into this wealth because many hold low mortgage rates from previous years. Accessing additional funds would require borrowing at significantly higher current rates. As of September 16, 2026, the average interest rate for a home equity loan is approximately 8.14%. Financial experts note that because these loans are typically distributed as a lump sum requiring immediate repayment, failure to meet terms carries a “significant risk of foreclosure.” Regional disparities persist. In states like Hawaii and California, average equity exceeds $600,000, whereas in Louisiana, Oklahoma, and Iowa, it sits just above $100,000. Mortgage distress also remains a factor, with the share of homeowners who are seriously underwater—owing at least 25 percent more than their home’s estimated value—increasing to 3.2 percent from 2.7 percent the previous year. Recent data highlights extreme equity growth in specific regions. Between Q1 2020 and Q2 2026, six states saw average home equity gains exceed $200,000 per mortgaged property: New Jersey ($250,861), Connecticut ($239,653), Rhode Island ($224,813), California ($214,632), Massachusetts ($213,288), and New Hampshire ($206,811). These rising values have created diverging financial realities.

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