Average HELOC rates fell to 7.16% while home equity loan rates rose slightly, widening the gap to 19 basis points.
The average adjustable HELOC rate dropped to 7.16%, marking a new low for 2026. Meanwhile, fixed-rate home equity loans averaged 7.35%, up from 7.31% in late June, creating a 19-basis-point differential.
Both rates reflect borrowers with credit scores of at least 780 and a combined loan-to-value ratio below 70%. HELOC rates are typically tied to the prime rate, adjusting with broader interest rate movements, while home equity loan rates remain fixed.
The choice between the two depends on borrower risk profiles and funding needs, as lenders assess margins based on creditworthiness and loan terms.