Home equity line of credit (HELOC) balances reached $446 billion in Q1 2026, up $12 billion from the previous quarter. Newly originated mortgage debt, including both purchase and refinance loans, held roughly steady at $530 billion.
At the same time, May existing-home sales reached a 4.17 million seasonally adjusted annual rate. For agents and brokers, equity remains a strong homeowner signal, but not every equity-rich owner is a near-term seller.
Why more owners are staying put
The financial case for staying put remains strong. The 30-year fixed-rate mortgage averaged 6.48% as of June 4, 2026. That is below year-ago levels but still high enough to make move-up math difficult for owners with 3% or 4% mortgages.
Equity also remains widespread. In Q1 2026, 43.3% of mortgaged US homes were equity-rich, meaning owners had at least 50% equity. That gives many homeowners options beyond listing, especially if they can keep a lower monthly payment.
Supply is part of the lock-in story, too. Research published by Brookings found that inflation-adjusted home prices are more than 15% above the previous bubble-era peak, while annual housing stock growth slowed from 4% in the 1950s to 0.6% in the 2010s. For many owners, selling means giving up a low-rate loan and buying again in a high-price, still-limited inventory environment.
HELOC balances are rising
The New York Fed data shows a sustained rise in HELOC balances, not a one-quarter anomaly. Q1 2026 marked the 16th consecutive quarterly increase. That does not prove HELOC borrowers would otherwise sell. It does show more homeowners are using housing wealth, while overall transaction activity remains constrained.
Earlier equity-access data points move in the same direction. ICE Mortgage Technology reported in June 2025 that US mortgage holders had $11.5 trillion in tappable equity entering Q2 2025. First-quarter second-lien equity withdrawals also rose 22% year over year to nearly $25 billion, the strongest first-quarter volume in 17 years.
For agents, a homeowner with equity is not always a homeowner preparing to sell. That owner may be weighing a renovation, an accessory dwelling unit, aging-in-place upgrades, debt consolidation, or help with a family member’s down payment.
Who is best positioned to tap equity
The homeowners best positioned to tap equity are typically those with enough remaining equity, stable income, and a reason to avoid resetting their first mortgage. This changes the prospecting conversation. A broad “your home is worth more than you think” campaign may miss owners who already know they have equity but prefer to renovate.
Agents can be more useful by helping owners compare scenarios: sell, renovate, downsize, rent out the property, or revisit the decision later. The role is not to give lending or financial advice. It is to frame the housing-market side of the decision and refer clients to qualified professionals when financing questions come up.
How agents can stay in the conversation
The move-up seller pipeline is likely to stay selective while rates remain elevated and affordability remains tight. Agents should not assume equity-rich homeowners are near-term listing leads.
Agents can stay useful before a transaction is imminent. Annual equity reviews, renovation ROI conversations, lender introductions, vendor referrals, and price-point market updates can keep agents in the relationship before an owner is ready to list.
For brokerage leaders, this also creates a training opportunity. Agents need to know how to discuss equity without drifting into financial advice. They should be able to explain market conditions, replacement-home trade-offs, and timing considerations, then bring in a lender, financial adviser, or tax professional when the conversation moves beyond real estate.
Owners who tap equity to renovate are still investing in properties they may eventually sell. Agents who maintain those relationships through the renovation cycle will be better positioned when life events, rate changes, or market conditions bring those owners back into the listing pipeline.