The share of mortgage holders considered equity-rich fell to 43.3% in Q1 2026, down from 44.6% in the prior quarter.
The percentage of U.S. homeowners with mortgage properties deemed equity-rich declined to 43.3% in the first quarter of 2026, marking the lowest level since the fourth quarter of 2021. The drop from 44.6% in the previous quarter reflects shifting home equity dynamics amid persistent mortgage rates near 6%.
Average HELOC rates stood at 7.21% as of May 9, 2026, while home equity loan rates matched a 2026 low of 7.36%. Both rates are calculated for borrowers with strong credit profiles and low loan-to-value ratios. The prime rate, a key benchmark for second mortgages, currently sits at 6.75%.
Homeowners with low primary mortgage rates may increasingly turn to HELOCs or home equity loans to access accumulated home value, despite higher borrowing costs on second liens.