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% on August 17, 2026, marking its lowest level this year. Meanwhile, fixed-rate home equity loans averaged 7.35%, up from a June low of 7.31%. The 19-basis-point differential reflects recent shifts in borrowing costs for homeowners with strong credit profiles.
Both rates apply to borrowers with credit scores of at least 780 and combined loan-to-value ratios below 70%. HELOC rates, tied to the prime rate, fluctuate with broader interest rate movements, while home equity loan rates remain fixed but have edged higher in recent weeks.
The data underscores a growing divergence in home equity financing options, with lenders adjusting margins based on risk assessments, including credit scores and debt levels.