Homeowner Equity Hits All-Time Highs at $16.9 Trillion
Homeowner equity in the U.S. reached a record-breaking $16.9 trillion in March, according to the ICE Mortgage Monitor Report, underscoring a booming real estate market even as price acceleration begins to temper.
By the numbers:
- $16.9 trillion in total homeowner equity.
- $11 trillion in tappable equity, a historical peak.
- 48 million homeowners possess some level of tappable equity, averaging $206K per borrower, up from $185K last year.
However: A significant portion of this wealth is locked in due to historically low mortgage rates. About two-thirds of this equity belongs to homeowners with rates below 4%, and 84% to those with rates under 5%, limiting the likelihood of tapping into this resource outside emergencies.
Home prices: The ICE Home Price Index showed prices rose 1.2% in March—significantly higher than the 25-year average. This represents the third consecutive month of above-average gains, although the annual growth cooled slightly to 5.6% from an upwardly revised 6.0% in February.
What they’re saying: “Such strong price gains continue to plague would-be homebuyers in today’s higher-rate environment, but for existing homeowners, the picture keeps growing brighter,” said Andy Walden, ICE’s Vice President.
The big picture: This surge in equity benefits current homeowners by increasing their financial security and potential market leverage. However, the rising home prices continue to challenge new entrants into the housing market, exacerbating the divide between potential and current homeowners.
