Homeowners Sit On $17.8 Trillion In Tappable Equity — ICE Says Cash Access Has Never Been Higher

Core Insights - American homeowners are experiencing a record level of housing wealth, with total home equity reaching approximately $17.8 trillion and $11.6 trillion being "tappable" while maintaining a 20% cushion [1] - The trend of homeowners accessing their equity is increasing, with cash-out refinance loans making up 59% of all refinancing transactions in Q2, despite rising interest rates [3] - Property insurance costs are rising significantly, becoming the fastest-growing component of mortgage expenses, with premiums increasing by 4.9% in 2025 and 11.3% over the past year [5][6] Home Equity Access - Home equity lines of credit (HELOCs) provide homeowners with the ability to borrow as needed without replacing their existing low-rate mortgages, allowing for flexibility in accessing cash [2] - Approximately 48 million mortgage holders have access to an average of $213,000 in tappable equity [1] Market Trends - The growth rate of tappable equity has slowed to a two-year low, with some markets, particularly in the Sun Belt and Western regions, experiencing declines in tappable equity per borrower [4] - About 1% of mortgage holders, roughly 564,000, are currently underwater on their mortgages [4] Rising Costs - The cost of owning a home is increasing, particularly due to rising property insurance costs, which have surged nearly 70% over the past five and a half years [5] - In Los Angeles, property insurance premiums increased by 9% in six months and 19.5% year over year, while Florida has seen some moderation in insurance costs [6]