Average HELOC and home equity loan rates stand at 7.23% and 7.36%, respectively, with minimal spread for borrowers.
Home equity line of credit (HELOC) and home equity loan rates are nearly identical, separated by just 2 basis points. The average HELOC adjustable rate is 7.23%, while the fixed-rate home equity loan averages 7.36% for qualified borrowers.
HELOC rates hit a 2026 low of 7.19% in mid-May, while home equity loan rates bottomed at 7.31% in late June. Both products target applicants with credit scores of at least 780 and a combined loan-to-value ratio below 70%.
HELOCs typically adjust with the prime rate, making them sensitive to broader interest rate movements. Lenders add margins based on borrower risk factors like credit score and debt levels.