Home equity held by U.S. mortgage borrowers reached a record $18 trillion in the second quarter of 2026, according to ICE. The milestone comes as the national delinquency rate edged higher, serious late payments declined, and negative equity increased among some recent buyers, highlighting an increasingly uneven financial position among American homeowners.
Key Takeaways
- Mortgage-holder home equity reached $18 trillion in Q2 2026, the highest level recorded by ICE.
- About 47.5 million mortgage holders had $11.7 trillion in tappable equity, averaging roughly $212,000 per borrower.
- The national mortgage delinquency rate rose five basis points to 3.55% in June, while serious delinquencies fell to 570,000.
- About 813,000 borrowers were underwater in Q2, up 44% from a year earlier, with concentrations among recent buyers and homeowners in Texas and Florida.
U.S. homeowners with mortgages entered the summer holding more property equity than at any previous point in ICE’s data, but the latest figures show that those gains are not evenly distributed.
Intercontinental Exchange reported on Aug. 10 that mortgage-holder home equity reached $18 trillion for the first time during the second quarter. Annual home-price growth also accelerated to 1.5% in July, marking a fifth consecutive month of acceleration and the strongest annual pace in 14 months.
At the same time, ICE’s mortgage-performance data showed a modest increase in overall delinquencies, while the number of borrowers deeply behind on payments declined. Negative equity also increased among some recent homeowners.
Together, the figures present a housing market in which millions of owners retain substantial financial cushions while a smaller group has less room to absorb falling property values, higher borrowing costs or payment difficulties.
Home Equity Reaches a Record $18 Trillion
ICE reported that 47.5 million mortgage holders collectively had $11.7 trillion in tappable equity during the second quarter, averaging about $212,000 per borrower. Tappable equity generally represents property value that could potentially be accessed while leaving a 20% equity cushion in the home.
That cushion can give some homeowners additional options when household finances change. Depending on property values, credit qualifications and lending terms, owners with sufficient equity may be able to sell without bringing additional funds to closing or consider borrowing against part of their accumulated housing wealth.
“Mortgage holder equity hitting $18 trillion is a remarkable milestone,” Andy Walden, head of mortgage and housing market research at ICE, said in the Aug. 10 announcement.
ICE linked the increase partly to stronger spring home prices following lower mortgage rates earlier in 2026. The company said weaker price readings from summer 2025 also moved out of annual comparisons, contributing to faster year-over-year growth.
The latest price data does not indicate that every market is moving in the same direction. Local supply, demand and borrowing conditions continue to produce significant differences in home values across regions.
Mortgage Delinquencies Rise as Serious Late Payments Fall
The delinquency figures show a more complicated pattern than the increase in the headline rate alone suggests.
ICE reported that the national delinquency rate rose five basis points to 3.55% in June. The increase was roughly half the typical seasonal rise for the month, and the rate remained below the 4.16% recorded in June 2019.
At the same time, serious delinquencies, defined as loans at least 90 days past due but not in foreclosure, fell to 570,000. That represented a six-month low. The number of borrowers moving into 30-day and 60-day delinquency also fell on both a monthly and annual basis.
New FHA defaults were down 15% from a year earlier, which ICE described as their largest annual decline in more than four years.
Foreclosure activity, however, continued to move gradually higher. Active foreclosures reached 0.53% of mortgages in June, the highest share in six years. Foreclosure starts also reached a six-year high, while completed foreclosure sales increased 16% from a year earlier but remained 46% below pre-pandemic levels.
The figures add context to rising U.S. foreclosure activity, which has been developing from unusually low levels rather than through a broad surge in missed payments. ICE said high levels of homeowner equity continue to help many distressed borrowers avoid foreclosure.
Negative Equity Reveals a Divide Among Homeowners
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The record national total masks a different experience for borrowers whose mortgage balances exceed the estimated values of their properties.
ICE estimated that approximately 813,000 borrowers were underwater during the second quarter, up 44% from a year earlier. Those borrowers were concentrated among FHA and VA loans, homeowners who purchased between 2022 and 2025, and borrowers in Texas and Florida, where ICE said declines from previous price peaks have been more pronounced.
Recent buyers can be more exposed to price declines because they have had less time to reduce principal balances or benefit from earlier home-price appreciation. Even moderate declines can therefore have a larger effect on their equity positions.
Regional pricing conditions add another layer. Seller price reductions in July became more common as higher borrowing costs and softer seasonal demand influenced parts of the U.S. housing market. Price cuts were particularly prevalent in the West and South, although conditions varied substantially by metropolitan area.
Borrowing costs can also influence how homeowners use the equity they already hold. Home-equity loans, home-equity lines of credit and cash-out refinancing depend on current loan pricing, meaning a large equity balance does not necessarily provide inexpensive access to cash.
ICE found that conforming purchase borrowers with nearly identical credit profiles were locking rates with an average spread of 38 basis points in 2026. On a $300,000 mortgage, ICE estimated that difference at roughly $76 per month and about $5,790 during the first five years.
Those differences reinforce the divided nature of the current market. One household may hold substantial home equity but face relatively high borrowing costs, while another may have little usable equity after purchasing near a local price peak.
The latest figures therefore show two conditions developing at the same time. U.S. home equity has reached a record level across the mortgage market, while delinquency, foreclosure and negative-equity data indicate that some homeowners remain under financial pressure.
Frequently Asked Questions
What Is the Current Level of U.S. Home Equity?
ICE reported that mortgage-holder home equity reached a record $18 trillion in the second quarter of 2026. About $11.7 trillion was considered tappable equity among approximately 47.5 million mortgage holders.
Are Mortgage Delinquencies Rising?
The national mortgage delinquency rate increased five basis points to 3.55% in June 2026. Serious delinquencies moved in the opposite direction, falling to a six-month low of 570,000.
How Many Mortgage Borrowers Are Underwater?
ICE estimated that approximately 813,000 mortgage holders were underwater in the second quarter, 44% more than a year earlier. The group was concentrated among some recent buyers, FHA and VA borrowers, and homeowners in Texas and Florida.
Why Does Home Equity Matter When Delinquencies Rise?
Home equity can provide distressed homeowners with more options when a property remains worth more than the outstanding mortgage balance and associated selling costs. ICE said high homeowner equity continues to help many distressed borrowers avoid foreclosure.
How Are Mortgage Rates Affecting the Housing Market?
ICE said lower rates earlier in 2026 supported housing demand and home-price growth, while more recent increases in rates may limit additional price acceleration. Borrowing costs also affect the expense of accessing existing property equity.
