U.S. Mortgage Holder Equity Reaches Record $18T — Evening Brief – 08.10.26
American homeowners accumulated a record $18 trillion in mortgage holder equity during the second quarter as home-price appreciation accelerated, though financial pressure increased among some recent buyers, according to Intercontinental Exchange’s August Mortgage Monitor.
Annual home-price growth reached 1.5% in July, its highest level in 14 months and fifth consecutive monthly acceleration. ICE attributed the improvement partly to lower mortgage rates earlier in 2026, which stimulated demand, and weak year-earlier prices rolling out of annual comparisons.
More recent monthly gains have softened as borrowing costs moved higher, potentially limiting further price acceleration during the second half.
“The spring market provided a meaningful boost to both prices and equity,” said Andy Walden, ICE’s head of mortgage and housing market research. “At the same time, rates have trended higher since early in the year.”
About 47.5 million mortgage holders had a combined $11.7 trillion in tappable equity, averaging approximately $212,000 per borrower.
However, roughly 813,000 borrowers owed more than their homes were worth, up 44% from a year earlier. Negative equity was concentrated among Federal Housing Administration and Department of Veterans Affairs borrowers, households that purchased between 2022 and 2025, and homeowners in Texas and Florida.
ICE also found substantial rate differences among similarly qualified borrowers. Conforming purchase borrowers received rates that differed by an average of 38 basis points in 2026. On a $300,000 mortgage, that gap equals about $76 monthly and $5,790 over five years.
The average spread widened to 47 basis points for FHA borrowers and 48 basis points for VA borrowers.
Bank-owned homes sold at a 27.5% discount to comparable properties in June, among the widest gaps in more than two decades. The largest relative discounts appeared in Florida, Texas, California and the Mountain West, though foreclosure inventory and distressed buying opportunities remained limited.