Average HELOC rates fell to 7.21%, just two basis points above the 2026 low, while home equity loan rates stand at 7.36%.
Average HELOC rates declined to 7.21% as of May 11, 2026, approaching the year’s low of 7.19% set in mid-March. Home equity loan rates also eased, with the national average fixed rate at 7.36%. Both rates apply to borrowers with a credit score of at least 780 and a combined loan-to-value ratio below 70%.
The prime rate, a key benchmark for HELOCs, currently sits at 6.75%. Lenders typically add a margin, such as 0.75%, resulting in variable rates starting near 7.50%. Home equity loans may carry different margins, influencing their fixed rates.
Homeowners hold an estimated $34 trillion in home equity, but stagnant first-mortgage rates limit refinancing options. HELOCs and home equity loans provide alternatives for accessing equity without sacrificing low existing mortgage rates.