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merican homeowners are sitting on a staggering $11.2 trillion in accessible equity, according to the latest ICE Mortgage Monitor report. This represents about 65% of the total $17.2 trillion in home equity. However, lenders typically only lend up to 80% of a homeowner's equity, which explains why the available amount is lower.

    The average homeowner has around $319,000 worth of equity in their property, with approximately $207,000 accessible for borrowing. Despite this, homeowners have been using their equity at half the rate they did historically, with second mortgages down by 26% and cash-out refinances declining by 69%. ICE Vice President Andy Walden attributes this to interest rates, which may be deterring homeowners from tapping into their equity.

    The study also highlights the "lock-in effect," where homeowners are reluctant to sell due to concerns about re-entering a market with reduced buying power. This phenomenon is now affecting home equity borrowing as well. While this presents challenges for prospective buyers, it's good news for homeowners who still have access to their equity.

    Buyers, on the other hand, face numerous hurdles. The lock-in effect reduces inventory, while high construction costs keep developers from entering the market. High interest rates also make it difficult for developers to secure financing and for buyers to complete purchases. A New York Federal Reserve study found that consumers expect interest rates to remain near 10% over the next three years, further exacerbating the housing affordability crisis.

    For homeowners who are already sitting on a pile of equity, this situation presents an opportunity. However, for prospective buyers, it's likely to be a long and challenging road ahead.