Average rates on home equity loans and HELOCs fell to their lowest levels this year, easing borrowing costs for homeowners.
Average rates on fixed-rate home equity loans dropped to 7.36% on May 19, down 8 basis points from a month ago and matching the 2026 low set in mid-March. Adjustable-rate HELOCs declined to 7.21%, a 3 basis point decrease over the same period, nearing the year’s low of 7.19%.
The declines follow elevated mortgage rates, with 30-year and 20-year loans still above 6%. Homeowners with low primary mortgage rates may turn to second mortgages to access home equity without refinancing. Rates are based on borrowers with credit scores of at least 780 and loan-to-value ratios below 70%.
The trend reflects modest easing in borrowing costs amid stable credit conditions for qualified applicants.