Homeowners saw an average home equity gain of $12,400 year over year in the third quarter, the smallest gain in two years.
The third quarter was down from $16,000 in annual gains in the second quarter, though gains did differ by state, CNBC reports. Home equity increased by $36,500 in California and by $32,600 in Nevada, while equity actually fell in North Dakota, Louisiana, and Connecticut.
Home values were still up 5.4 percent annually in October, but those gains have been slowing recently as affordability, exacerbated by rising mortgage rates, has become a concern for potential buyers.
The drop in equity gains has been sharpest in the third quarter of this year. In fact, after hitting a record high, the amount of tappable equity, which is how much cash homeowners can pull out of their homes, fell quarter to quarter for the first time since the housing recovery began, according to Black Knight.