ICE says U.S. mortgage equity hits record high as 2.4 million borrowers become equity millionaires

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US mortgage equity record high

Highlights

U.S. mortgage holders' total home equity hit a record $17.5 trillion in Q3, up 1.4% year over year, according to ICE.
Tappable equity per borrower averages $204,000, $16,600 higher than last year, with 2.4 million borrowers holding at least $1 million in equity, up 6%.
Servicer retention for refinancing borrowers dropped to 27% in Q3, as cash-out refinances—now 75% of refinance attrition—challenge traditional retention strategies.

Third-quarter equity gains and refinancing trends

As reported by Intercontinental Exchange, citing ICE, the November 2026 ICE Mortgage Monitor finds that mortgage holders collectively hold $17.5 trillion in home equity in the third quarter, up 1.4% from a year earlier. Tappable equity, defined as the amount available while maintaining a 20% cushion, rises 1.2% to an average of $204,000 per borrower, an increase of $16,600 from a year ago.

ICE says 2.4 million mortgage holders now have at least $1 million in equity, up 6% year over year, while nearly 9 million hold $500,000 or more, up 4%. Andy Walden, head of mortgage and housing market research at ICE, says the buildup in housing wealth is creating opportunities for lenders and servicers to reach borrowers looking to access that value.

Higher borrowing costs are also reshaping refinance behavior. Cash-out transactions account for 1 in 7 rate locks in recent weeks, while purchase loans make up roughly 80% of rate locks, and adjustable-rate mortgages represent more than 10% of early October rate locks as 30-year fixed rates move above 7%.

Servicer retention pressures and state concentration

ICE says servicer retention declines in the third quarter as cash-out activity grows. Servicers retain 27% of refinancing borrowers, down four percentage points from the prior quarter, while retention among rate-and-term refinancers falls nine percentage points to 30%. Cash-out retention remains at 26%, with servicers retaining just 15% of cash-out borrowers who took out loans in 2019 or earlier.

Cash-out refinances account for 75% of all refinance portfolio attrition, highlighting the challenge for firms trying to keep customers whose main goal is equity access rather than rate savings. Bob Hart, president of mortgage technology at ICE, says traditional rate-based retention strategies are proving less effective for that borrower segment.

California accounts for 49% of the nation’s equity millionaires, far ahead of other states. New York follows with 189,000 equity millionaires, ahead of New Jersey with 141,000 and Florida with 104,000, underscoring how heavily high-equity mortgage wealth remains concentrated in a few housing markets.

In our earlier coverage of the Philippine Social Security System (SSS) equity portfolio performance, we explained that the pension fund reported P204 billion in realized gains and dividend income since 1968 while arguing that recent paper losses are not cash losses unless assets are sold below cost. The report also outlined SSS’s disciplined, diversified approach—favoring fundamentally strong, dividend-paying holdings—and highlighted how recurring income and long-term positioning help cushion market volatility.

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