HELOC rates rise to 7.26%, home equity loans top 8%

Borrowing against a home remained cheaper than many unsecured loans in early May, but the cost of tapping equity kept climbing. Bankrate’s national average HELOC rate was 7.26% as of May 6, 2026, while the average home equity loan rate reached 8.03%, pushing fixed-rate home equity borrowing above 8%. Bankrate’s HELOC data center showed a current observation date of May 13, 2026.

The difference matters because the two products solve different borrowing problems. A HELOC can fit a renovation paid in stages, since homeowners draw money as bills come due, while a home equity loan is often a better match for a one-time expense or debt consolidation that needs a fixed rate and a fixed payoff schedule. Bankrate said the average $30,000 HELOC climbed 16 basis points to 7.26%, a reminder that the price of flexibility has been moving higher.

Measured against broader mortgage borrowing, home equity credit still sat above standard home loans. Freddie Mac said the 30-year fixed mortgage averaged 6.37% for the week of May 7, 2026, and the 15-year fixed averaged 5.72%. That leaves the average HELOC about 0.89 percentage points above a 30-year mortgage, while the average home equity loan carried a spread of 1.66 points. Freddie Mac’s Primary Mortgage Market Survey has tracked weekly and monthly mortgage-rate data back to 1971, giving today’s borrowing costs a long historical frame.

For homeowners, the math now favors caution. Home equity can still make sense when the borrowing need is temporary, the project is likely to improve the home’s value, and monthly cash flow is strong enough to handle higher payments if rates rise. It becomes far riskier when the money goes to consumption spending, when debt already strains the budget, or when credit card balances are being rolled into a loan secured by the house without a clear repayment plan. With HELOC rates at 7.26% and home equity loans at 8.03%, tapping equity is still possible, but it is no longer cheap enough to treat like casual spending money.