Average rates for home equity loans and HELOCs fell 8 and 3 basis points, respectively, matching or nearing 2026 lows.
Average home equity loan rates declined to 7.36% on May 26, 2026, down 8 basis points from a month ago and matching the 2026 low set in mid-March. HELOC rates fell 3 basis points to 7.21%, just above their 2026 low of 7.19% recorded in mid-March.
Last month, home equity loan rates averaged 7.44%, while HELOC rates stood at 7.24%. Both products are based on applicants with a minimum credit score of 780 and a combined loan-to-value ratio below 70%. The declines come as 30-year and 20-year mortgage rates remain above 6%.
The drop in rates may ease borrowing costs for homeowners looking to tap into home equity without refinancing their primary mortgages.