HELOC balances reached $459 billion in the second quarter of 2026, according to the Federal Reserve Bank of New York. That puts outstanding home equity lines of credit $142 billion above their low in early 2022. The increase also marks the 17th consecutive quarter of growth.
That does not necessarily mean homeowners suddenly developed a nationwide appetite for borrowing against their houses. Something more practical has happened. Many homeowners have built substantial equity while sitting on older mortgages with much lower fixed rates, making a cash-out refinance a particularly awkward way to get money. A HELOC can provide access to equity without replacing that first mortgage.
