U.S. homeowners are holding record equity but using little of it

U.S. homeowners have built up record levels of housing wealth as home prices have risen sharply in recent years, but many are not tapping into it. In the second quarter, Cotality said homeowners had about $11.5 trillion in tappable equity, meaning they could borrow against it while still keeping enough value in their homes for lenders. Total mortgageholder equity reached $17.9 trillion, or about $310,000 per homeowner on average. Even though originations of second mortgages and home equity lines of credit rose nearly 20% from the first quarter, that still represented less than 0.1% of available tappable equity. Analysts said homeowners with the most equity often have low mortgage rates, stronger cash flow, and less need to move, which reduces the incentive to borrow against their homes. Regional differences remain wide, with the highest equity levels in parts of the West and Northeast and weaker or declining values in some other states.