Home Equity Lending Surges: Is It Time to Tap Your Equity?

Home equity lending jumped 20% in Q2 2026, signaling that more California homeowners are putting their equity to work. Here's what that means for you.

Home equity lending is booming, and it's not hard to see why. In the second quarter of 2026 alone, over $78 billion in new home equity lines of credit (HELOCs) and closed-end second mortgages were originated nationwide — a jump of more than 20% compared to the previous quarter. Year over year, the trend is equally strong, with first-half production up nearly 12% from the same period in 2025.

HELOCs continue to dominate, making up over 80% of all home equity originations. Their flexibility — borrow what you need, when you need it — makes them especially appealing for homeowners managing renovations, debt consolidation, or investment opportunities.

For California homeowners, this is particularly relevant. With property values remaining elevated across much of the state, many of you are sitting on significant equity that could be working harder for you. Whether you're eyeing a kitchen remodel, funding a down payment on an investment property, or consolidating high-interest debt, a HELOC or second mortgage could be a smart, cost-effective move.

The surge in lender competition also means rates and terms are worth shopping carefully right now.

Curious how much equity you can access? Contact our team today for a free consultation and personalized rate quote.