ICE reports home equity withdrawals climb to highest first-quarter level since 2021

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ICE: home equity withdrawals rise

Highlights

ICE reports home equity withdrawals rose 2% year over year in Q1, reaching the highest first-quarter level since 2021, with 54% via second liens.
First-quarter second-lien lending hit an 18-year high, with nearly two-thirds of originations from homeowners with 2020–2022 first mortgages amid low-rate retention.
Average HELOC rates fell to 6.6% in March, making $50,000 in equity accessible for a $275 monthly payment, driving demand despite higher primary mortgage rates.

Mortgage monitor highlights second-lien surge

As reported by Intercontinental Exchange, the company's June 2026 ICE Mortgage Monitor shows equity withdrawals rising 2% year over year in the first quarter, reaching the highest first-quarter level since 2021. More than half of all equity extraction, 54%, comes through second liens as borrowers seek to keep historically low first-mortgage rates in place.

ICE says first-quarter second-lien lending hits an 18-year high, while cash-out refinance withdrawals reach their highest first-quarter level since 2022. Andy Walden, head of mortgage and housing market research at ICE, says millions of homeowners remain locked into first mortgages with rates well below current market levels, making second liens and HELOCs a more attractive route to access equity.

The report also says 3.9 million homeowners who took out primary mortgages from 2020 to 2022 now have a second lien. Nearly two-thirds of first-quarter second-lien originations come from those borrowers, while cash-out refinances show a broader mix, with nearly half coming from 2023-or-later borrowers and about a quarter from 2020 to 2022 vintages.

Housing affordability and price trends support demand

Falling HELOC pricing is also helping fuel demand for home equity products. Average second-lien HELOC rates fall to 6.6% in March, their most attractive level since late 2022, and ICE says a borrower can access $50,000 in equity at that rate with a monthly payment of about $275, down sharply from early 2024 levels.

Despite a roughly 50-basis-point increase in mortgage rates since February, affordability remains better than a year ago, according to the report. Homebuyers still have about 3% more purchasing power than a year earlier, the monthly payment on an average-priced home remains $48 lower than last May, and buying that home now requires 29.8% of median household income versus 31.6% a year earlier.

ICE also says home price growth is becoming more broad-based across the country. Nearly 70% of major markets post annual home price gains in May, the largest share since July 2025, while almost 90% record seasonally adjusted month-over-month appreciation, the strongest reading in two years; northeastern markets continue to lead gains, while some formerly fast-growing Sun Belt markets remain under pressure.

Bob Hart, president of ICE Mortgage Technology, says home equity products are taking on a larger role as refinance opportunities become more limited. That shift may give lenders with mortgage and home equity capabilities a stronger position as consumer demand evolves.

Our earlier article on SpaceX’s potential IPO and its expected spillover into Southern California’s coastal housing market explained how new liquidity for employees could lift demand, especially around Hawthorne and in South Bay luxury areas like Manhattan Beach. We noted that lock-up periods could delay the strongest impact, but buyer positioning and mortgage-qualification planning were already increasing ahead of any broader price response.

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