HELOC and Home Equity Loan Rates Hover Near 7 Percent This Week

Homeowners sitting on accumulated equity have a rare window: home equity line of credit and home equity loan rates are the lowest since 2022, allowing homeowners to tap a source of cash without refinancing their homes. The gap between these products and other forms of consumer borrowing has rarely been this stark, with personal loan rates running above 12% and credit card rates hovering around 20% or higher, according to Money.

According to real estate analytics firm Curinos, the average monthly adjustable HELOC rate is 7.20%, while the national average on a home equity loan sits at a fixed-rate 7.47%. Bankrate's separate survey of the nation's largest lenders, conducted March 18, 2026, put the national average HELOC interest rate at 7.17% — and the average home equity loan rate at 7.85%, with a range spanning 5.65% to 10.75%. The week prior, Bankrate tracked the 10-year home equity loan rate at 8.04% and the 15-year at 8.00%, underscoring a modest but consistent downward drift.

HELOC rates ticked lower after the Federal Reserve kept its benchmark rate unchanged, with the average rate for a $30,000 HELOC dropping one basis point to 7.17%, extending its lowest level since 2022, according to Bankrate's national survey of lenders.

The distinction between the two products matters for borrowers. A HELOC carries a variable rate that moves monthly alongside market conditions, which means borrowers who open a line now could benefit further if the Fed delivers additional cuts. The Federal Reserve is expected to cut interest rates at least twice more in 2026, which would directly lower HELOC variable rates, since HELOC rates are tied to the prime rate, which moves in lockstep with the Fed's benchmark federal funds rate adjustment decisions. If the Fed delivers two quarter-point cuts, the average HELOC rate could fall below 6.75% by year's end.

A home equity loan, by contrast, locks in a fixed rate at closing. That rate "will remain the same even if the overall rate climate heats up again in the future," according to Money — a meaningful advantage for borrowers who prioritize payment certainty. The trade-off: if rates continue to fall, the borrower is locked into today's cost. Home equity loans can be refinanced if rates improve considerably, but that process carries additional closing costs.

Lenders vary significantly in what they offer. Among five institutions surveyed in recent rate data, Fifth Third Bank listed the lowest minimum APR at 5.99%, with a combined loan-to-value (CLTV) limit of 70% and loan amounts ranging from $10,000 to $500,000. Achieve followed at 6.24% APR with an 80% CLTV cap and loans between $15,000 and $300,000. Third Federal showed a minimum APR of 6.39% at 80% CLTV for loans up to $200,000, while TD Bank started at 6.99% with a $10,000 minimum. Connexus Credit Union listed the highest minimum APR in the group at 7.31%, but allowed borrowers to reach 90% CLTV.

That CLTV figure matters because lenders don't allow borrowing against the full value of a property. Depending on the lender, borrowers can typically access between 80% and 90% of their home's value, minus the outstanding first mortgage balance. On a home valued at $350,000 with a $280,000 mortgage, a 90% CLTV limit caps available borrowing at $35,000 ($350,000 x 0.90 = $315,000, minus $280,000).

With average credit limits of nearly $150,000, there is significant financial flexibility available at the lowest rates in years — enough for major home improvements, debt consolidation, or large purchases. Common loan terms run 10 or 15 years, with fixed monthly installments that allow for predictable budgeting.

The rate a specific borrower receives depends on more than just the prevailing market average. Credit history, income, loan amount, term length, and each lender's own business goals all factor into the final offer. Borrowers with good credit who shop around can already find rates in the 6% range, according to Bankrate. In both cases, the home serves as collateral, making affordability assessment essential before committing to either product.