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Mortgage equity withdrawal was only slightly positive in Q4. Mortgage debt rose about $99 billion, indicating homeowners only modestly tapped home equity.
Mortgage debt as a share of GDP is about 43.8%, well below the housing‑bubble peak, so most homeowners still have large equity cushions (homeowner equity around 71%).
Much of the increase in mortgage debt likely reflects home purchases and routine changes like principal payments or debt write‑offs, so true cash‑out borrowing is limited and the 'home ATM' remains mostly closed.

Mortgage lending climbed to a 3.5‑year high in Q4, driven by a surge in refinances as lower rates improved affordability and expanded the pool of refinance‑eligible borrowers.
Average annual property insurance payments reached an all‑time high in 2025, rising 6.6%, and borrowers with higher insurance burdens are more likely to fall behind on payments.
Overall delinquencies dipped slightly, but serious delinquencies and active foreclosures rose, leaving over 850,000 borrowers 90+ days past due or in foreclosure—the highest level since mid‑2018.

US homeowners now have a record $35 trillion in home equity, which shows how much their homes are worth compared to what they owe on mortgages.
The increase in home equity is mainly due to a housing boom during the pandemic, where demand surged while mortgage rates were low, pushing home prices higher.
This huge amount of equity might lead homeowners to use home equity loans and second mortgages instead of selling their homes, especially since many have low mortgage rates.

Mortgage equity withdrawal was slightly positive in Q3, meaning homeowners overall pulled out a little equity but not anywhere near the bubble-era levels.
Mortgage debt rose by $108 billion in Q3 (the same as Q2), though a good share of that borrowing is for buying homes rather than tapping existing equity.
Mortgage debt as a share of GDP is down to about 43.9% from its bubble peak, so most homeowners now have large equity cushions and few are in negative equity, meaning the “home ATM” is mostly closed.

Falling mortgage rates triggered a surge in refinances, lifting servicer refinance retention to a 3.5‑year high and making rate‑and‑term refinances the dominant activity; non‑bank servicers retained far more borrowers than banks.
Mortgage performance strengthened as national delinquencies fell to about 3.34%, well below pre‑pandemic levels, although FHA loans remain an outlier with higher non‑current rates.
Home prices firmed modestly with the ICE Home Price Index up 0.8% year‑over‑year in November, but gains are uneven — the Northeast and Midwest lead, the South and West lag, and single‑family homes are outperforming condos.

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We won't see a big increase in foreclosures like before. Most homeowners have good equity and stable mortgages, which helps them avoid financial struggles.
The number of properties owned by lenders remains low, indicating that fewer people are losing their homes. This is a good sign compared to past economic downturns.
Delinquency rates are decreasing, and most homeowners are able to keep up with payments. Even those in trouble can often find solutions to stay in their homes.

Home price growth has slowed down for seven months in a row. This suggests that the housing market is cooling off.
Mortgage holders currently have a lot of equity, totaling $17.2 trillion in the U.S. This equity can sometimes be tapped for additional borrowing.
Recent cuts to Fed rates might encourage more homeowners to use their home equity. This could lead to an increase in home equity withdrawals by homeowners.