Lisa Hintz

US homeowners held ~$17T in equity, with ~$11T tappable. High values and tight inventory left many equity-rich but cash-constrained households considering borrowing.
By Early-Q2 2026, home equity loan rates hovered near 8%, making borrowing relatively expensive, especially for owners who previously locked mortgages below 4%.
The central bank held rates steady through Early-Q1 and Late-Q1 meetings, keeping prime-linked borrowing costs, including HELOCs, relatively high so far this year.
Loan type mattered: home equity loans offered fixed payments, HELOCs carried variable costs, and cash-out refinancing looked less attractive for owners with ultra-low mortgages.
Using equity could make sense for value-adding renovations, debt consolidation, education, or major medical bills when the purpose was clear and justified interest costs.
Risks stayed significant: your home served as collateral, HELOC payments could change, and overborrowing amid uncertain rates or values could raise foreclo

Home Equity Choices Need Extra Care

The national housing market entered spring stronger, helped by better affordability and rebuilding inventory, even as 30-yr mortgage rates rebounded from early-2026 lows.
Annual home price growth was 0.4% in Late-Q1, while Mid-Q1 and Late-Q1 posted the strongest seasonally adjusted monthly gains in nearly 12 mo.
Affordability still improved yearly despite rates rising ~0.4 points since late Mid-Q1, which cut buying power ~4% from early-2026 peaks.
Inventory ↑8% yearly in Late-Q1, but active listings stayed 11% below typical 2017–2019 levels. Four in 10 markets matched or exceeded pre-pandemic supply.
Refinance incentives weakened sharply. Higher rates cut borrowers considered in the money by ~60% from recent highs, while homeowner lock-in looked likely to ease gradually.
Mortgage stress also ticked higher: delinquency reached ~3.7% in Mid-Q1, and ~878K loans were severely delinquent or in foreclosure, highest since Mid-2018 excluding pandemic effects.
Price firming broadened, but