Data from the September 2026 Intercontinental Exchange (ICE) Mortgage Monitor Report shows a rise in homeowners borrowing against their property equity. In the second quarter of 2026, nearly 548,000 homeowners withdrew a combined $54 billion in equity, marking the highest number of participants since 2022.
This increase follows record-high home equity levels reached in 2025. The report noted that the second quarter of 2026 saw the second-largest withdrawal volume in a single quarter since 2022, trailing only the second quarter of 2025. Total "tappable" equity—the amount homeowners can borrow while maintaining a 20% equity cushion—stood at $11.4 trillion at the start of the quarter.
The report highlights that second liens, which include home equity loans and home equity lines of credit (HELOCs), drove the majority of the activity. Homeowners withdrew $29.5 billion through these products, a 3% decrease from the peak reached in the second quarter of 2025. The extraction rate for the quarter was 0.47% of available equity, the highest rate recorded since 2022.
A primary driver for this activity is the cost difference between borrowing against a home versus using unsecured credit. As of September 2026, interest rates for home equity loans and HELOCs are in the low 8% range. In contrast, average personal loan rates exceed 12%, and average credit card interest rates are over 22%. A household shifting $50,000 in debt from a 22% credit card to an 8% home equity loan would see a significant reduction in monthly interest charges, though they must weigh this against the risk of foreclosure if they cannot meet the new payment obligations.
The rise in these loans indicates a shift in how consumers manage debt in the current economy. While these products offer lower rates, they require homeowners to pay closing costs if they choose to refinance between fixed and variable options later. The ICE Mortgage Monitor Report suggests that while extraction rates are up, they remain only modestly higher than year-ago levels. Borrowers will continue to monitor interest rate movements through the remainder of 2026 to determine if fixed or variable products best suit their financial needs. Currently, no specific deadlines or upcoming regulatory votes were reported regarding these lending products.