ICE Mortgage Monitor: Home Equity Withdrawals Increase in Q1

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Intercontinental Exchange Inc., Atlanta, released its June ICE Mortgage Monitor, finding that in the first quarter, homeowners tapped equity at the highest levels for the period since 2021.

Equity withdrawals grew 2% year-over-year in Q1. An estimated $47 billion in equity was withdrawn in the quarter, down from $49 billion in Q4 2025, but up from $46 billion in Q1 2025.

The jump was driven in part by second-lien lending, which hit its strongest first-quarter volume in 18 years. More than 54% of all equity extraction came through second liens, and cash-out refinance withdrawals hit their highest level for Q1 since 2022.

“The housing market continues to be defined by the lock-in effect,” said Andy Walden, head of mortgage and housing market research at ICE. “Millions of homeowners are sitting on first mortgages with rates well below current market levels, making second liens and HELOCs an attractive way to access equity without giving up those loans. While higher mortgage rates have reduced refinance opportunities and softened affordability gains in recent months, home prices continue to firm across much of the country and affordability remains improved from year-ago levels.”

Almost two-thirds of Q1 second-lien originations came from 2020-2022 vintage borrowers–3.9 million people who took out a primary mortgage in that period have now added second liens. Cash-out refinances were from a broader range of homeowners, with nearly half coming from 2023-or-later borrowers and a quarter from 2020-2022 vintage borrowers.

Affordability took somewhat of a hit recently, ICE found, as mortgage rates have increased over the past few months. But, homebuyers still have approximately 3% more purchasing power than they did a year ago, and the monthly payment on the average-priced home is still $48 lower than last May.

Purchasing the average-priced home took 29.8% of median household income, down from 31.6% a year ago.

And, home prices are growing again. Nearly 70% of major markets posted annual home price gains in May, the largest share since last summer. Almost 90% saw month-over-month growth, the strongest in two years.