According to the U.S. Federal Reserve, American homeowners hold more equity than at any point on record. equity than at any point on record. Owners’ equity in residential real estate reached $34.9 trillion in the first quarter of 2026, and mortgage borrowers hold roughly $11 trillion of it in tappable equity, an average of about $310,500 per borrower.
Demand is not the question. The MBA’s most recent Home Equity Lending Study, covering 2024, reports that only about half of home-equity applications reach closing, 49 percent for HELOCs and 46 percent for closed-end seconds, and that turn times average 39 days. The study also reports an average cost to originate of roughly $4,600 per loan in 2024, about 14 percent above 2020. How lenders prepare for home equity demand now will determine who will be operationally ready to win in 2027 and beyond.