Declining mortgage rates are creating new volume opportunities across the mortgage industry, reducing borrowing costs for both home equity and purchase loans while expanding the pool of homeowners who could benefit from refinancing.
Homeowners entered the fourth quarter of 2025 with $11.2 trillion in tappable equity — the amount that can be accessed while retaining at least 20% equity in their properties. This translates to an average of $204,000 available to borrow, according to the November 2025 Mortgage Monitor Report from ICE Mortgage Technology.
Annual home-price appreciation increased to 0.9% in October following nine months of slowing appreciation. But with ICE’s Conforming 30-year Fixed Mortgage Rate Lock Index at 6.17% in late October — the lowest rate in a year — the cost to withdraw $50,000 in equity has fallen by more than $100 per month from recent highs.
For homeowners using home equity lines of credit (HELOCs), rates have dropped from nearly 10% in early 2024 to the low-7% range as of Q3 2025, according to the report.
“Homeowners still have near-record amounts of tappable equity, and the cost to access that equity continues to improve,” Andy Walden, head of mortgage and housing market research at ICE, said in a written statement.
Lower rates are also reopening the refinance window. The number of borrowers who meet traditional credit requirements (+720 score) have at least 20% equity in their home while being able to save at least 75 basis points through a refi rose to 1.7 million — the highest number since early 2022.
When including all borrowers regardless of credit score or equity, 4.1 million are “in the money” to refinance, a figure that could rise to 5 million if rates decline to 6.125%. according to ICE.
“The recent easing in mortgage rates has begun to open the refinance window for many borrowers, particularly those who originated loans in the past two years,” Walden added.
“As refinancing and equity-tapping become more favorable, lenders and servicers have an opportunity to proactively support borrowers,” Tim Bowler, president of ICE Mortgage Technology, said in a statement.