Why US Home Equity Withdrawals Are Surging in 2026

In this episode, Lucas and Luna examine the surprising jump in US home equity lines of credit in spring 2026. With the Fed funds rate at 3.63% and mortgage rates above 6%, homeowners are tapping equity at levels not seen since 2008. Lucas breaks down the data: HELOC originations rose 18% year-over-year in Q1 2026, even as existing home sales remain depressed. Luna questions whether this signals consumer stress or strategic refinancing. They discuss the regional breakdown—Sun Belt states leading the surge—and what rising debt service costs mean for household balance sheets. The conversation also touches on the Federal Reserve's latest Financial Stability Report, which flagged elevated household debt as a risk. A timely look at how Americans are using their homes as ATMs in a high-rate environment, and whether history is repeating or rhyming differently this time. #HELOC #HomeEquity #ConsumerDebt #HousingMarket #FederalReserve #MortgageRates #FinancialStability #DebtService #SunBelt #HousingCrisis #USEconomy #HouseholdDebt #Q12026 #Economics #Business #Podcast #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo