Data augmentation is an intuitive solution to increase the diversity of training instances in the machine learning community. Mixup is acknowledged as an effective and efficient mix-based data augmentation method, following a linear alignment assumption that the linear interpolations of features align the corresponding linear interpolations of labels. Unfortunately, this assumption can be violated in many complex scenarios, resulting in augmented instances with noisy labels, especially for regression problems. To solve this problem, we propose an easy-to-implement mixup method, namely DEnosing MIXUP (DE-mixup), which iteratively corrects the noisy response targets by leveraging an auxiliary noise estimation task with mixup deep features. Additionally, we suggest an efficient optimization method with alternating direction method of multipliers. We compare DE-mixup with the existing mixup variants and other prevalent data augmentation methods across benchmark regression datasets. Empirical results indicate the effectiveness of DE-mixup under the in-distribution and out-of-distribution cases.