Mortgage Holder Equity Hits Record $18T as Home Prices Accelerate  

Mortgage holder equity reached $18 trillion for the first time on record while annual home price growth reached a 14-month high in July.

That’s to Intercontinental Exchange Inc.’s August 2026 Mortgage Monitor Report.

“Mortgage holder equity hitting $18 trillion is a remarkable milestone — one that reflects just how much wealth American homeowners have built,” said Andy Walden, Head of mortgage and housing market research at ICE. “The spring market provided a meaningful boost to both prices and equity, and we’re seeing those tailwinds work through the data now. At the same time, rates have trended higher since early in the year, which may soften how much additional acceleration we’re likely to see in the second half.”

ICE said that key findings from the August Mortgage Monitor include:

Annual home price growth rose to 1.5% in July, marking its fifth consecutive month of acceleration and its steepest single-month increase since mid-2023. The increase reflects lower rates early in 2026 injecting demand into the market, as weak summer 2025 prices roll out of the comparison window. However, as rates have moved higher, one-month adjusted price gains have softened, suggesting that further acceleration in the second half of the year may be limited.

Renewed Price Appreciation

Mortgage holder equity hit $18 trillion in Q2, a new all-time high, as lower rates earlier in the year supported renewed home price appreciation. Within that total, 47.5 million mortgage holders hold $11.7 trillion in tappable equity, averaging approximately $212,000 per borrower.

Despite the strong overall picture, approximately 813,000 borrowers are underwater — up 44% year-over-year — concentrated among FHA and VA borrowers, those who purchased between 2022 and 2025, and in Texas and Florida where price declines from peak have been most pronounced. Borrowers with nearly identical credit profiles are locking meaningfully different interest rates, averaging a 38-basis-point spread among conforming purchase borrowers in 2026.

ICE said that on a $300,000 mortgage, that difference translates to roughly $76 per month and roughly $5,790 in additional costs over the first five years.

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