U.S. Accessible Home Equity Reaches Record $13.2 Trillion in Second Quarter of 2026, According to First American Data & Analytics’ Inaugural Accessible Home Equity & Mortgage Rate Lock-In Trends Report

First American Financial (FAF) published its inaugural home-equity report, estimating U.S. accessible equity at a record $13.2 trillion in second-quarter 2026.

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—Mortgage-rate lock-in remains elevated, with 88 percent of accessible equity, $11.6 trillion, held by homeowners whose primary mortgage rates are below current market rates, says Senior Economist Genaro Villa—

SANTA ANA, Calif.--(BUSINESS WIRE)-- First American Data & Analytics, a leading national provider of property-centric information, risk management and valuation solutions and a division of First American Financial Corporation (NYSE: FAF), today published its inaugural 2026 Accessible Home Equity & Mortgage Rate Lock-In Trends Report, finding that accessible home equity reached a record of $13.2 trillion in the second quarter of 2026, but 88 percent of that equity is held by homeowners whose primary mortgage rates are below the current prevailing mortgage rate. The report estimates that total U.S. accessible home equity increased 1.5 percent year over year, while locked-in accessible home equity decreased 2.0 percent year over year.

“Understanding home equity across markets requires more than tracking home values alone,” said Matt Key, vice president of property data at First American Data & Analytics. “By connecting property and mortgage data, we can provide a more complete view of estimated equity availability and mortgage rate conditions, helping industry professionals understand how those factors vary across markets and where they may be able to help homeowners leverage their equity to solve challenges or enhance their residences.”

The report tracks accessible homeowner equity, the portion of a homeowner’s equity that may be accessed while keeping the total loan-to-value ratio at or below 80 percent. Locked-in accessible equity incorporates a borrower’s existing primary mortgage rate relative to prevailing mortgage rates, adding an economic-incentive dimension to the measure. The report provides national, state, and metropolitan Core-Based Statistical Area estimates, including a lock-in severity measure, with historical results spanning the first quarter of 2005 through the second quarter of 2026. By combining property value and mortgage data with prevailing mortgage rates, the report offers lenders and mortgage professionals a market-level view of estimated equity availability and rate lock-in to inform planning and analysis.

2026 Second Quarter National Accessible Equity

First American Data & Analytics’ Accessible Equity
Metric	$ Amount (Trillions)	Q1 2026 to Q2 2026 % Change	Q2 2025 to Q2 2026 % Change
U.S. Total Accessible Equity	$13.2	1.9 percent	1.5 percent
U.S. Locked-In Accessible Equity	$11.6	3.2 percent	-2.0 percent

Highlights

• Total U.S. accessible equity was estimated at $13.2 trillion in the second quarter of 2026, the highest level in the report’s historical series, which begins in the first quarter of 2005.
• Of that total, $11.6 trillion, approximately 88 percent, was locked in, meaning it was held by homeowners whose primary mortgage rates were below the prevailing national average 30-year mortgage rate of 6.49 percent at the end of the second quarter.
• Among locked-in accessible equity, 87 percent was classified as severely to extremely locked in, reinforcing the breadth and strength of the mortgage rate lock-in effect.

“Compiling this unique dataset creates a new lens into the scale of the mortgage rate lock-in effect at the national, state and market level. Many homeowners secured mortgages at record-low rates in 2020 and 2021 and saw their equity surge as home price appreciation soared during the pandemic-era housing boom,” said Genaro Villa, senior economist at First American Data & Analytics. “When prevailing mortgage rates subsequently increased, the share of accessible equity held by rate-locked homeowners exploded in just five quarters, from 18 percent in the first quarter of 2021 to 85 percent in the second quarter of 2022 and remains elevated at 88 percent in the latest quarter.”

At the state level, Connecticut, Massachusetts, and Rhode Island had the lowest shares of eligible accessible equity that was locked in, at approximately 75 percent, 77 percent, and 78 percent, respectively, compared with 88 percent nationally. Southeastern states Florida and Georgia also ranked among the bottom 10. The top 10 states with the highest shares of eligible accessible equity that was locked in included Midwestern states South Dakota, Wisconsin, and Minnesota, along with Western states Washington, Colorado, California, and Hawaii. Despite regional differences, locked-in equity accounts for approximately 75 percent or more of accessible home equity in every state.

2026 Second Quarter State Lock-In Share Highlights

States Ranked by Locked-In Share of Accessible Equity
Top 10 States	Locked-In Share		Bottom 10 States	Locked-In Share
South Dakota	98.0 percent		Connecticut	74.6 percent
Washington	93.3 percent		Massachusetts	76.7 percent
Wisconsin	92.4 percent		Rhode Island	77.7 percent
Colorado	92.0 percent		Florida	82.0 percent
Minnesota	91.9 percent		Georgia	82.6 percent
California	91.7 percent		New Hampshire	83.0 percent
Hawaii	91.7 percent		New York	84.0 percent
North Carolina	91.7 percent		Louisiana	85.9 percent
Montana	91.7 percent		Ohio	86.2 percent
Kansas	91.4 percent		Arizona	87.8 percent

2026 Second Quarter Lock-In Severity Highlights

The First American Data & Analytics Accessible Home Equity & Mortgage Rate Lock-In Trends Report divides locked-in accessible equity into four severity categories based on the difference between a borrower’s primary mortgage rate and the prevailing national average 30-year, fixed mortgage rate. For the second quarter of 2026, the benchmark rate was 6.49 percent. A rate more than zero and up to 50 basis points below the benchmark rate is classified as low severity lock-in; more than 50 and up to 100 basis points below is moderate; more than 100 and up to 150 basis points below is severe; and more than 150 basis points below is extreme.

“Approximately 83 percent of locked-in accessible equity remains in the extreme category, meaning it is held by homeowners whose mortgage rates are more than 150 basis points below the prevailing rate. For lenders, that concentration underscores the relevance of financing options that allow homeowners to access equity without replacing a low-rate first mortgage,” said Villa. “The combined low- and moderate-severity share rose from approximately 10 percent at the end of 2025 to 13 percent in the latest quarter, indicating that a slightly larger portion of locked-in equity is held by homeowners whose mortgage rates are closer to prevailing rates. For those homeowners, the rate tradeoff associated with cash-out refinancing may be less pronounced.”

2026 Second Quarter Lock-In Severity Highlights

National Locked-In Severity Highlights
Rate Lock-In Severity	$ Amount (Billions)	Q1 26 to Q2 26 % Change	Q2 25 to Q2 26 % Change	Share of Total Locked-In Accessible Equity
Low Lock-In	$929	10 percent	25 percent	8 percent
Moderate Lock-In	$627	18 percent	-3 percent	5 percent
Severe Lock-In	$438	-8 percent	0 percent	4 percent
Extreme Lock-In	$9,642	2 percent	-4 percent	83 percent

“California markets occupied four of the top five spots in the ranking of locked-in accessible equity per property, with amounts ranging from approximately $437,000 to $899,000 per property. Because the measure ranks the dollar amount of locked-in equity per eligible property, California’s strong showing reflects the scale of accumulated equity in its high-value housing markets,” said Villa. “Most of the locked-in equity in these California markets fell into the extreme-severity category, while several Florida and New England metros had larger shares of their locked-in equity in the low- and moderate-severity categories. In those markets, more of the locked-in equity is associated with mortgage rates closer to prevailing rates, indicating less severe mortgage-rate lock-in.”

Core-Based Statistical Areas (CBSAs) with Greatest Locked-In Accessible Equity Per Property (Among the 100 Most Populous CBSAs)
CBSA	$ Amount	Low Lock-In Share	Moderate Lock-In Share	Severe Lock-In Share	Extreme Lock-In Share
San Jose-Sunnyvale-Santa Clara, CA	$899,406	4.2 percent	3.7 percent	3.5 percent	88.6 percent
San Francisco-Oakland-Fremont, CA	$596,864	5.2 percent	4.1 percent	3.3 percent	87.4 percent
Los Angeles-Long Beach-Anaheim, CA	$553,137	6.2 percent	4.2 percent	3.3 percent	86.2 percent
San Diego-Chula Vista-Carlsbad, CA	$513,563	5.7 percent	3.9 percent	3.2 percent	87.2 percent
Urban Honolulu, HI	$436,652	7.0 percent	5.1 percent	3.2 percent	84.6 percent

Next Release

The third quarter 2026 edition of the First American Data & Analytics Accessible Home Equity & Mortgage Rate Lock-In Trends Report is expected to be released in December.

2026 Second Quarter Accessible Home Equity & Mortgage Rate Lock-In Trends Frequently Asked Questions

Q: What did the First American Data & Analytics Accessible Home Equity & Mortgage Rate Lock-In Trends Report find for the second quarter of 2026?
A: Total U.S. accessible home equity was estimated at $13.2 trillion, up 1.5 percent from a year earlier and the highest level in the report’s historical series. Of that total, $11.6 trillion, approximately 88 percent, was held by homeowners whose primary mortgage rates were below the prevailing national average 30-year mortgage rate of 6.49 percent at the end of the quarter. Locked-in accessible equity declined 2.0 percent year over year.

Q: What is accessible home equity?
A: Accessible home equity is the estimated portion of a homeowner’s equity that may be accessed, while keeping the total loan-to-value ratio at or below 80 percent. The measure combines property valuation and mortgage data to estimate the amount of equity that may be available at the property level. It is an analytical estimate, not a guarantee that a homeowner can borrow the full amount. Actual borrowing capacity depends on lender underwriting, the loan product, and the homeowner’s financial circumstances.

Q: Why is connecting property and mortgage data important to this analysis?
A: Property values alone don't provide a complete picture of the equity opportunity. By connecting property, valuation and mortgage data, the Accessible Home Equity & Mortgage Rate Lock-In Trends Report can account for estimated mortgage debt and existing mortgage rates alongside property values. This provides a more complete market-level view of estimated equity availability and mortgage rate lock-in and helps reveal how these conditions vary across markets.

Q: What is locked-in accessible equity?
A: Locked-in accessible equity is accessible equity held by homeowners whose primary mortgage rates are below the prevailing national average 30-year mortgage rate. The measure adds the economic incentive created by the difference between an existing mortgage rate and the prevailing rate to the traditional accessible-equity calculation.

Q: How does the report measure lock-in severity?
A: Lock-in severity is based on how far a borrower’s primary mortgage rate is below the prevailing national average rate. A difference of more than zero and up to 50 basis points is classified as low severity lock-in; more than 50 and up to 100 basis points is moderate; more than 100 and up to 150 basis points is severe; and more than 150 basis points is extreme.

Q: Why does mortgage rate lock-in matter when homeowners consider accessing their equity?
A: The size of the rate difference can affect the financial tradeoffs associated with different borrowing options. A homeowner with a substantially lower-rate first mortgage may see greater value in preserving that loan and considering a HELOC or home equity loan. When the difference between the homeowner’s mortgage rate and the prevailing rate is smaller, a cash-out refinance may be a more competitive option. Connecting property and mortgage data helps put those tradeoffs in market context, allowing lenders and other housing finance professionals to better understand how equity availability and rate lock-in vary across markets.

Q: Does the report show which borrowing option homeowners will choose?
A: No. The report measures accessible equity and the severity of mortgage-rate lock-in. It does not observe or predict whether an individual homeowner will select a HELOC, home equity loan, cash-out refinance, or another option.

Q: What regional patterns stood out in the second quarter?
A: Among the 100 most populous matched CBSAs, the four with the highest levels of locked-in accessible equity per property were all in California. Within the 25 highest-ranked markets, the North Port and Miami metros in Florida, along with Bridgeport, Boston, and Providence in New England, had the least severe mortgage-rate lock-in relative to other markets.

Q: How far back does the historical series extend?
A: The report provides quarterly estimates from the first quarter of 2005 through the second quarter of 2026. The series is a retrospective reconstruction based on current-vintage data and methodology, not a record of estimates that would have been available in each historical quarter.

Q: How current are the Accessible Home Equity & Mortgage Rate Lock-In Trends Report data?
A: The latest report covers the second quarter of 2026. The report is designed to be updated quarterly as the required valuation, mortgage, market-rate, and house-price data become available.

Q: Who produces the Accessible Home Equity & Mortgage Rate Lock-In Trends Report?
A: The report is produced by First American Data & Analytics, a division of First American Financial Corporation (NYSE: FAF).

Q: When will the next Accessible Home Equity & Mortgage Rate Lock-In Trends Report be released?
A: The third quarter 2026 report is expected to be released in December.

First American Data & Analytics Accessible Home Equity & Mortgage Rate Lock-In Trends Report Methodology

The First American Data & Analytics Accessible Home Equity & Mortgage Rate Lock-In Trends Report estimates the portion of homeowner equity that may be accessed, while maintaining a total loan-to-value ratio at or below 80 percent. For each property, accessible equity is calculated as 80 percent of the estimated property value, less modeled outstanding mortgage debt, with a minimum value of zero. Results are aggregated at the national, state, and Core-Based Statistical Area (CBSA) levels.

The report provides quarterly estimates beginning with the first quarter of 2005. The latest supported quarter uses the latest qualifying automated property valuation. Earlier property values are reconstructed using changes in a non-seasonally adjusted house price index at the CBSA level when available and at the state level otherwise. Mortgage balances are estimated at each quarter-end using recognized property-financing events and scheduled loan amortization. Because the historical series is reconstructed using current residential scope, geography, property valuations, and current-vintage house price data, it should not be interpreted as a historical calculation vintage.

A property is included in the lock-in analysis when it has positive modeled mortgage debt and a resolved primary mortgage rate. Accessible equity is classified as locked in when the borrower’s primary mortgage rate is below the prevailing national average of a 30-year, fixed mortgage rate available on or before the quarter-end date. Lock-in severity is based on the difference between those rates: low is more than zero and up to 50 basis points; moderate is more than 50 and up to 100 basis points; severe is more than 100 and up to 150 basis points; and extreme is more than 150 basis points.

Per-property amounts are calculated by dividing locked-in accessible equity by the number of properties included in the lock-in analysis. Metro selection uses the 2024 American Community Survey one-year total population estimates. The comparison is limited to the 100 most populous metropolitan CBSAs, from which the 25 markets with matched equity data and the highest locked-in accessible equity per property are ranked.

Disclaimer

Opinions, estimates, forecasts and other views contained in this page are those of First American’s Economics team, do not necessarily represent the views of First American or its management, should not be construed as indicating First American’s business prospects or expected results, and are subject to change without notice. Although the First American Economics team attempts to provide reliable, useful information, it does not guarantee that the information is accurate, current or suitable for any particular purpose. © 2026 by First American. Information from this page may be used with proper attribution.

About First American Data & Analytics

First American Data & Analytics, a division of First American Financial Corporation, is a national provider of property-centric information, risk management and valuation solutions. First American maintains and curates the industry’s largest public records property and ownership dataset that includes more than 8.6 billion document images. Its major platforms and products include: DataTree^® property data, FraudGuard^® risk solution, RegsData^® compliance suite, Procision™ AVM, and TaxSource™ property tax reporting. Find out more about how First American Data & Analytics powers the real estate, mortgage and title settlement services industries with advanced risk intelligence solutions at www.FirstAmDNA.com.

About First American

First American Financial Corporation (NYSE: FAF) is a premier provider of title, settlement, and risk solutions for real estate transactions. With its combination of financial strength and stability built over more than 135 years, innovative proprietary technologies, and unmatched data assets, the company is leading the digital transformation of its industry. First American also provides data products to the title industry and other third parties; valuation products and services; mortgage subservicing; home warranty products; banking, trust and wealth management services; and other related products and services. With total revenue of $7.5 billion in 2025, the company offers its products and services directly and through its agents throughout the United States and abroad. In 2026, First American was named one of the 100 Best Companies to Work For by Great Place to Work^® and Fortune Magazine for the eleventh consecutive year. More information about the company can be found at www.firstam.com.

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Source: First American Data & Analytics

Key Terms

loan-to-value ratio financial

The loan-to-value ratio (LTV) measures how large a loan is compared with the worth of the asset used as collateral, expressed as a percentage — for example, a $80,000 loan on a $100,000 property equals an 80% LTV. It matters to investors because higher LTVs mean higher risk of loss if the asset falls in value, and they influence borrowing costs, loan approval, and the stability and pricing of securities backed by such loans; think of it like how deep your financial safety net is under a loan.

basis points financial

Basis points are a way to measure small changes in interest rates or percentages, where one basis point equals 0.01%. For example, if a loan's interest rate increases by 50 basis points, it's gone up by 0.50%. They help people understand tiny differences in rates that can add up over time, making financial comparisons clearer.

cash-out refinancing financial

A loan transaction that replaces an existing mortgage or other secured loan with a new, larger loan and gives the borrower the difference in cash. The new loan uses the same collateral (commonly a home) and increases the borrower’s outstanding debt while converting part of the borrower’s equity into cash; it also typically resets the interest rate, monthly payment schedule, and loan term according to the new loan’s terms.

heloc financial

A HELOC (home equity line of credit) is a revolving loan that lets a homeowner borrow against the value built up in their house, similar to a credit card but secured by the property. It matters to investors because HELOCs affect banks’ lending volumes, interest income and credit risk, and high consumer use or defaults can signal stress in the housing market and consumer spending, influencing related stocks and bond valuations.