Average HELOC rates stand at 7.25% versus 7.86% for home equity loans as of June 29, 2026, per data analytics.
Homeowners face a 61-basis-point spread between adjustable-rate home equity lines of credit and fixed-rate home equity loans. The average HELOC rate is 7.25%, while home equity loans average 7.86%, based on borrowers with credit scores of at least 780 and loan-to-value ratios below 70%.
The gap reflects differing structures: HELOCs offer flexible withdrawals over time, while home equity loans provide a single lump-sum payout. With primary mortgage rates stagnant, homeowners holding low-rate first mortgages increasingly turn to second-lien products to access $34 trillion in collective home equity.
No immediate market reaction was reported following the data release.