Homeowner Demand for Home Equity Investments Up 40% as Borrowing Costs Climb, Hometap Data Shows

Pre-qualifications jumped 20% after the Fed's recent hike, as Hometap surpasses $3 billion invested and 30,000 homeowners served

BOSTON, Nov. 10, 2026 /PRNewswire/ -- Homeowners are turning to the equity in their homes as borrowing costs climb this fall. New data from Hometap, the financial technology company pioneering home equity financing solutions, shows weekly pre-qualifications for a Hometap Investment rose 20% in the three weeks after the Federal Reserve raised rates on Sept. 16, and were up 40% from the same period a year earlier. September was Hometap's highest month on record for pre-qualifications. A homeowner now pre-qualifies for a Hometap investment every three minutes.

"A homeowner coming to us every three minutes tells you where people are right now," said Jeffrey Glass, CEO and co-founder of Hometap. "They're rethinking how they use their hard-earned equity, and they want an option that fits their unique financial situation. Homeowners deserve more than one way to do that."

Mortgage holders are sitting on a record $18 trillion in home equity, according to ICE, but tapping it now comes with a higher monthly payment. The Fed raised rates in September for the first time since July 2023, held steady on Oct. 28, and many expect another increase in December. Home equity loan rates have followed, averaging 8.77%, according to Bankrate, which translates to a monthly payment of about $630 on a $50,000, 10-year loan. As costs climb, traditional ways of using home equity may no longer be the right fit for every homeowner.

Hometap offers homeowners another way to use their equity without selling or taking on a new monthly payment, and in June it updated its pricing to make that option even more accessible. In the three months that followed, pre-qualifications rose 28% from the same period a year earlier. Homeowners are putting their equity toward the things that matter most to them: more than half of all Hometap investments (55%) have gone toward paying down debt, and about one in five (22%) toward home renovations.

JoAnne Grossman, a homeowner in South Carolina, is one of them. She needed to replace her central air and pay down debt, but after researching traditional lending options, she decided they weren't the right fit.

"When costs keep going up, it's easy to feel stuck, even when you've done everything right. You work hard for your home, and it's stressful when it needs more than you have on hand. Hometap gave me the confidence to take care of what mattered," said Grossman.

With a home equity investment, homeowners receive cash up front in exchange for a share of their home's future value. They settle the investment at or before the end of the 10-year term through a refinance, savings, another financing option, or the sale of their home. In October, Hometap surpassed $3 billion invested and 30,000 homeowners served across 26 states.

"The demand we're seeing reflects a real need, and we expect it to continue, especially if rates rise again in December," said Carmen Vetere, Chief Growth Officer at Hometap. "Our focus is reaching homeowners when they are researching their options, with transparent information so they can decide whether a home equity investment is right for them."

Homeowners can see whether a home equity investment could be a good fit with Hometap's four-question HEI fit quiz, or get an estimate of how much equity they could access at hometap.com/.

About Hometap
Founded in 2017, Hometap is a Boston-based fintech company on a mission to make homeownership less stressful and more accessible. Starting with its industry-leading home equity investment product, the company has helped more than 30,000 homeowners across the U.S. access their home equity without having to take on additional monthly payments or sell their home. Hometap expanded its suite of innovative financial products and services in 2022 and introduced a centralized dashboard that allows homeowners to easily track their home equity, receive guidance and support from experts, and protect and grow the value of their home. Learn more at hometap.com/.

Rebecca Reese
[email protected]

SOURCE Hometap