Key facts
- Homeowners held $13.2 trillion in tappable equity in Q2 2026.
- 88% of accessible equity was locked in by low mortgage rates.
- Locked-in accessible equity totaled $11.6 trillion.
- South Dakota had the highest rate lock-in at 98% of accessible equity.
- Connecticut had the lowest rate lock-in at 74.6% of accessible equity.
- Proprietary reverse mortgage volume reached $3.5 billion in the first nine months of 2026.
US homeowners are holding a record $13.2 trillion in tappable home equity, but a significant portion is locked in by low mortgage rates, according to a new report from First American Data & Analytics. The report found that 88% of accessible equity is tied to mortgages with rates below the current market average, creating a "rate lock-in" effect that is influencing housing activity.
This entrenched lock-in, driven by homeowners securing low rates in 2020 and 2021, has led to subdued listing inventory and lower cash-out refinance volumes. The intensity of this lock-in varies by state, with South Dakota showing the highest share at 98% and Connecticut the lowest at 74.6%.
The trend presents an opportunity for alternative products like reverse mortgages, as traditional Home Equity Conversion Mortgages (HECMs) have seen historically low origination levels. Proprietary reverse mortgages are filling the gap, with their volume increasing significantly and capturing a larger market share.