Q1 2026 saw the highest home equity extraction since 2021, driven by HELOC rates averaging 7.25% and fixed loans at 7.86%.
American homeowners extracted home equity at the fastest first-quarter pace in five years, according to mortgage data. The surge reflects reluctance to refinance primary mortgages still locked below 6%, while second-lien rates remain near 2026 lows.
The average adjustable-rate HELOC stood at 7.25% on June 9, down from a March peak but above the year’s low of 7.19%. Fixed-rate home equity loans averaged 7.86%, up from May and well above the 7.36% low seen in mid-March. Both products target borrowers with strong credit and low loan-to-value ratios.
With 30-year mortgage rates above 6%, homeowners are opting for second mortgages to access rising home values without sacrificing existing low-rate loans. The trend signals sustained demand for flexible credit amid elevated borrowing costs.