American homeowners extracted $85 billion in home equity through cash-out refinances in Q1 2026, the highest quarterly total in two years, as falling rates unlock tappable equity.
Why Now
With rates dropping below 6% and home values near record highs, millions of homeowners are sitting on substantial equity. The average homeowner now has $215,000 in tappable equity.
- Q1 cash-out volume: $85 billion
- Average equity per homeowner: $215,000
- Most common uses: debt consolidation (35%), home improvement (28%), investment (18%)
- Average cash-out amount: $78,000
Financial advisors caution against tapping equity for non-essential spending, as it increases your loan balance and monthly payments.
