HomeEquityLoan News & Analysis
3 articles
Market Mood
HELOC Rates Hit 7.25% and Home Equity Loans Average 7.86%
As of June 2026, the average interest rate for Home Equity Lines of Credit (HELOCs) is 7.25%, with a 2026 low of 7.19% reached earlier this year. The national average for home equity loans stands at 7.86%, far from its low of 7.36% observed in mid-March. These rates are based on applicants with a minimum credit score of 780 and a combined loan-to-value ratio of less than 70%. This information is vital for homeowners looking to leverage their home equity options given the current primary mortgage rates near 6%.
Read More: HELOC Rates Hit 7.25% and Home Equity Loans Average 7.86%
HELOC Rates Drop to 7.21%, Equity-Rich Homeowners Decline to 43.3%
In the first quarter of 2026, 43.3% of properties with a mortgage were classified as 'equity-rich,' a decrease from 44.6% in the previous quarter, the lowest since Q4 2021. The average HELOC rate is currently 7.21%, with a national average home equity loan rate at 7.36%. HELOCs reached a 2026 low of 7.19% earlier in the year. Such declines in equity-rich homeowners and rising loan rates may affect borrowing capacity and homeowner decisions in the market.
Read More: HELOC Rates Drop to 7.21%, Equity-Rich Homeowners Decline to 43.3%
HELOC Rates Average 7.24% Amid Fed's Stance on 6.75% Prime Rate
The average rate for Home Equity Lines of Credit (HELOC) is currently 7.24%, while the national average for home equity loans stands at 7.37%. The Federal Reserve's prime rate remains unchanged at 6.75%, with expectations of maintaining this rate through the end of 2026, possibly even increasing it due to inflationary pressures. Earlier this year, HELOC rates hit a 52-week low of 7.19% in January. Homeowners may feel restricted in accessing their equity due to existing mortgage rates around 6%.
Read More: HELOC Rates Average 7.24% Amid Fed's Stance on 6.75% Prime Rate