Homeowners Are Sitting on Record Equity — Is Now the Time to Use It?

Did you know U.S. homeowners are holding a historic $11.5 trillion in tappable equity?

That’s money you could potentially access without selling your home — while still keeping a healthy 20% equity cushion in place.

And with interest rates for home equity lines of credit (HELOCs) trending downward, now might be one of the most cost-effective times in years to tap into your home’s value.

But should you use your equity now… or wait?

Let’s take a look at the numbers, the trend, and how to decide if it’s the right move for you.

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Record Levels of Home Equity

According to ICE Mortgage Technology’s June 2025 report:

• U.S. homeowners now hold $17.6 trillion in total home equity
• Of that, $11.5 trillion is considered “tappable” (you can borrow it and still keep 20% equity)
• The average homeowner has around $212,000 in tappable equity
• That’s 48 million homeowners with borrowing power — an all-time high

Yet, despite this massive equity boom, most homeowners haven’t touched it. In the first quarter of 2025, less than half a percent (0.41%) of tappable equity was accessed — far below historic norms.

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Borrowing Just Got More Affordable

Not only is there more equity to tap, but the cost of borrowing it has come down — a lot.

HELOC interest rates have dropped about 2.5% recently and fell below 7.5% earlier this spring.

What does that mean in practical terms?

• In early 2024, borrowing $50,000 via HELOC meant a payment of about $412/month
• Today, that same loan would cost $311/month
• That’s a savings of over $100 per month

And if the Fed follows through with expected rate cuts later this year, HELOC rates could dip further into the 6% range by 2026.

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Why More Homeowners Are Exploring HELOCs

Thanks to low mortgage rates they don’t want to give up, many homeowners are turning to HELOCs as a way to unlock cash — without refinancing or selling.

In fact, a recent survey from ICE showed 1 in 4 homeowners are thinking about using a HELOC or home equity loan in the next 12 months.

Here’s what they’re using the funds for:

• Home renovations – Update kitchens, bathrooms, outdoor spaces, or make energy-efficient upgrades
• Debt consolidation – Pay off high-interest credit cards with a lower-rate loan and streamline your payments
• Strategic investments – Start a business, invest in real estate, or fund education without dipping into retirement
• Emergency planning – Open a flexible credit line just in case — like a financial safety net

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Should You Use Your Equity Now?

Ask yourself:

• Do I have a clear purpose for the funds (remodeling, investing, debt consolidation)?
• Can I manage the payments — even if rates shift?
• Do I want access to cash without refinancing or selling?

If your answer is yes, this could be a great time to explore your options.

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Let’s Talk About Your Equity

Curious about how much equity you have or whether a HELOC makes sense for you?

I’d be happy to help you crunch the numbers, answer your questions, and connect you with local lenders you can trust. Reach out any time — let’s see what’s possible.