ICE Mortgage Monitor: Record Levels of Home Equity, Falling Rates Drive Highest HELOC Withdraws Since 2008
(Illustration: ICE Mortgage Technology)
U.S. mortgage holders carried a record $17.6 trillion in home equity entering the second quarter–with $11.5 trillion considered “tappable”–according to ICE Mortgage Technology, Atlanta.
ICE defines tappable equity as available for borrowing while maintaining at least a 20% equity cushion.
“Despite subdued withdrawal rates in recent years, early 2025 data points to shifting borrower behavior,” the report said, noting first-quarter second-lien equity withdrawals rose 22% year over year to nearly $25 billion, the largest first quarter volume in 17 years. This suggests increased interest in home equity access amid improving loan affordability.
“Equity levels remain historically high, and now we’re seeing the cost of borrowing against that equity drop meaningfully,” said Andy Walden, head of mortgage and housing market research at ICE. “The monthly payment needed to withdraw $50,000 via a home equity line of credit has fallen by more than $100 since early 2024. If the Fed moves forward with anticipated rate cuts, borrowing against home equity could become even more attractive in the second half of the year.”
ICE reported the average introductory rate on second-lien HELOCs has declined by 2.5 percentage points in recent quarters, dropping below 7.5% in March. If current market forecasts hold, HELOC rates could dip into the mid-6% range by 2026 — roughly on par with projected 30-year mortgage rates. This easing has already translated into lower monthly payments for borrowers. According to ICE’s McDash Home Equity database, the average monthly payment needed to borrow $50,000 dropped from $412 in early 2024 to $311 by the end of the first quarter of 2025.
Other highlights from the June 2025 Mortgage Monitor include:
• 48 million mortgage holders have tappable equity, with the average homeowner sitting on $212K.
• Mortgaged homes are, on average, only 45% leveraged, suggesting ample cushion for equity access.
• Lenders are becoming more aggressive with their HELOC rate offerings, with the spread to prime falling to the lowest levels since 2022.
• Equity withdrawals — including cash-out refinances — totaled $45 billion in the first quarter of 2025, the highest first quarter volume since 2022.
• Borrowers tapped just 0.41% of available tappable equity in the first quarter of 2025, still below long-term averages, indicating further room for growth.
“In our latest ICE Borrower Insights Survey, roughly 25% of homeowners said they are considering a home equity loan or HELOC in the next year,” said Tim Bowler, President of ICE Mortgage Technology.
