Average HELOC and home equity loan rates fall to 7.21% and 7.36%, respectively, with some lenders closing loans in as few as three days.
Average home equity line of credit rates dropped to 7.21% on May 25, 2026, while fixed home equity loan rates fell to 7.36%, both marking yearly lows. These rates apply to borrowers with credit scores of at least 780 and combined loan-to-value ratios below 70%.
The Mortgage Bankers Association reports the industrywide average closing time for home equity loans is 39 days, though some lenders advertise closings in as little as three days. Homeowners hold an estimated $34 trillion in home equity, with second mortgages offering access without refinancing primary loans.
Rates for second mortgages are tied to an index plus a margin, with HELOCs often linked to the prime rate. The decline in rates may increase demand among homeowners reluctant to forfeit low existing mortgage rates.