Mortgage Debt Rises in Q2 as Home Equity Grows
The Federal Reserve's Financial Accounts of the United States - Z.1 report for Q2 provides insights into mortgage debt and equity withdrawal in the US housing market.
Mortgage Equity Withdrawal (MEW) is an aggregate number that combines homeowners extracting equity, normal principal payments, and debt cancellation.
In Q2 2026, mortgage debt increased by $150 billion, up from $38 billion in Q1 and $120 billion in Q2 2025. This marks a significant shift from the almost 7 years of declining mortgage debt seen during the housing bust.
However, not all of this debt is being used for MEW, as some is being utilized to increase the housing stock through new home purchases.
The value of real estate as a percent of GDP increased in Q2 but remains below its recent peak in Q2 2022. Household percent equity has also seen an upward trend, reaching 71.9% in Q2 2026, up from 71.6% in Q1.