Key Takeaways
- Mortgage holders held a record third-quarter high of $17.5 trillion in home equity in Q3 2026, up 1.4% year over year, and 2.4 million of them held at least $1 million in equity, up 6%.
- Tappable equity rose 1.2% to an average of $204,000 per borrower, but cash-out refinances made up 75% of refinance-portfolio attrition as owners gave up low rates to reach that equity.
- The record is uneven: annual home price growth slowed to 1.0% in October, condo prices fell 1.2%, and the highest negative equity rates sit in Florida and Texas markets.
America’s homeowners have never held more equity in the third quarter of a year. ICE released its November 2026 Mortgage Monitor Report on November 9, and the headline is wealth, not sales.
Mortgage holders collectively held $17.5 trillion in equity in Q3, a record third-quarter high. That sits oddly beside a sales market running near four million existing-home sales a year, a gap NAR’s Lawrence Yun tied to pent-up demand and $35 trillion in housing wealth last week.
“Homeowners are sitting on substantial housing wealth, with 2.4 million mortgage holders now holding at least $1 million in equity,” said Andy Walden, Head of Mortgage and Housing Market Research at ICE.
The Equity Record, in Numbers
The gains are broad, but they are concentrated. Nearly 9 million mortgage holders held $500,000 or more in equity, up 4% year over year.
| ICE Mortgage Monitor, Q3 2026 | Figure |
|---|---|
| Total mortgage-holder equity | $17.5 trillion, up 1.4% year over year |
| Average tappable equity per borrower | $204,000, up 1.2% and $16,600 from a year ago |
| Equity millionaires (at least $1 million) | 2.4 million, up 6% |
| Holders with $500,000 or more | Nearly 9 million, up 4% |
| California share of equity millionaires | 49% |
Tappable equity is the amount an owner can access while maintaining a 20% cushion. ICE puts that average at $204,000 per borrower.
California accounted for 49% of the nation’s equity millionaires. New York followed with 189,000, then New Jersey with 141,000 and Florida with 104,000.
Owners Are Tapping It the Expensive Way
Equity is only useful if an owner can reach it, and reaching it now means borrowing at today’s rates. The 30-year fixed rate averaged 7.18% in Freddie Mac’s November 5 survey, and ICE says 30-year fixed rates moved above 7% in early October.
“In a higher rate environment, cash-outs are making up a greater share of refinances, with those homeowners giving up historically low mortgage rates and taking on higher monthly payments to tap into their equity,” Walden said.
- Cash-out transactions accounted for 1 in 7 rate locks in recent weeks, while purchase loans accounted for roughly 80% of rate locks.
- Adjustable-rate mortgages accounted for more than 10% of early October rate locks, as the points-adjusted spread between 5/1 ARMs and 30-year fixed loans widened from roughly 75 basis points over the summer to more than 100 basis points in early October.
- Servicers retained just 27% of refinancing borrowers, down four percentage points from the prior quarter, and cash-out refinances accounted for 75% of all refinance-portfolio attrition.
Retention among rate-and-term refinancers fell nine percentage points to 30%. Cash-out retention held at 26%, and servicers retained just 15% of cash-out borrowers who took out loans in 2019 or earlier.
“Traditional rate-based retention strategies aren’t effective for borrowers who are motivated by access to equity rather than interest rate savings,” said Bob Hart, President of Mortgage Technology at ICE.
The Record Is Uneven, and That Is the Usable Part
The full Mortgage Monitor adds the part the headline misses. Annual home price growth held at 1.0% in October, down from 1.4% earlier this year, with single-family prices up 1.3% and condo prices down 1.2%.
Single-family price growth outpaced condos in 98 of the 100 largest markets. That matches the separate Redfin finding that condo sellers outnumber buyers by 123%, the widest gap since 2013.
Negative equity is concentrated where prices pulled back most. ICE lists the highest rates in Cape Coral, Florida at 11.2%, Lakeland, Florida at 8.9%, Austin, Texas at 8.4%, San Antonio, Texas at 7.4%, and Tampa, Florida at 6.1%.
The national delinquency rate rose 12 basis points to 3.66% in September, up 24 basis points year over year. ICE notes it remains below every pre-pandemic September on record.
One lock-in milestone also passed quietly. Loans under 4% eased to 49% of active mortgages, below half for the first time since Q2 2020, down from 52% a year ago and a 70% peak in 2022.
For a beginner investor, the practical read is:
- Shop equity-rich and equity-poor markets differently. A record national average hides Cape Coral and Austin pockets where sellers have little cushion and may negotiate.
- Expect motivated sellers among recent cash-out borrowers, not rate shoppers. Owners who gave up a low rate to tap equity have a need, and needs surface in listings months later.
- Price condos from the condo data, not the house data. A 1.2% national condo price decline and a record seller surplus argue for wider offers and harder inspection of association costs.
- Watch the sub-4% share. Every point it falls is a point of the lock-in effect weakening, which is how more listings eventually reach the market.
Data source: ICE, November 2026 Mortgage Monitor Report, released November 9, 2026. The full ICE Mortgage Monitor report carries the complete home equity, servicer retention, home price, and mortgage performance detail.
