The latest ICE Mortgage Monitor report reveals that tappable home equity in the US has soared to an unprecedented $11.5 trillion, with 60% of mortgage holders having at least $100,000 available to borrow against. Despite outstanding mortgage debt reaching a record $13.8 trillion in June, the rise in home prices has outpaced debt growth, pushing mortgage holder equity to a new high of $17.6 trillion in Q2 2024.
Tappable equity, which allows borrowers to access funds while maintaining a 20% equity cushion, saw a 4% increase from Q1 and a 9.2% year-over-year rise.
Notably, 32 million mortgage holders possess at least $100,000 in tappable equity. Among them, 4.6 million have at least $500,000, and nearly 1.2 million hold $1 million or more, with those holding higher equity generally benefiting from lower first lien rates.
With a decline in interest rates, there may be an opportunity for more homeowners to save money via a rate and term or a cash out refinance to pay off debts.
Source : August 2024 Mortgage Monitor