The Fed has been front-page news lately, as prospects for rate cuts have been dashed in favor of prevailing sentiment that the Fed will raise rates later this year. If that happens, rising HELOC rates won’t be far behind. According to the CME FedWatch tool, there’s currently a 31% chance the Fed will raise rates by 25 basis points following their meeting in July. Come December, there’s a combined 81.6% consensus that rates will be higher.
Learn more: Find out how HELOC and home equity loan interest rates work and what you can expect to pay
HELOC and home equity loan rates: Friday, June 26, 2026
The average HELOC rate is 7.25%, according to real estate analytics firm Curinos. The 2026 HELOC low was 7.19% in mid-March and then again in May. The national average rate on a home equity loan is 7.86%. The 2026 HEL low was 7.36%, observed in both March and May.
Rates are based on applicants with a minimum credit score of 780 and a maximum combined loan-to-value ratio (CLTV) of less than 70%.
Learn more: Here are our picks for the best HELOC lenders
How lenders determine HELOC and HEL interest rates
Home equity interest rates work differently from mortgage rates. Second mortgage rates are based on an index rate plus a margin. That index is often the prime rate, which remains at 6.75%. If a lender added 0.75% as a margin, the HELOC would have a variable rate of 7.50%.
A home equity loan may have a different margin because it is a fixed-interest product.
Lenders have flexibility with pricing on a second mortgage product, such as a HELOC or home equity loan. Your rate will depend on your credit score, the amount of debt you carry, and the amount of your credit line compared to the value of your home. Shop a few lenders to find your best interest rate offer.
Read more: Learn about how fixed-rate HELOCs work
Look for low introductory HELOC rate offers
Today, FourLeaf Credit Union is offering a HELOC APR (annual percentage rate) of 5.99% for 12 months on lines up to $500,000. That’s an introductory rate that will convert to a variable rate in one year.
When shopping for lenders, be aware of both rates. And as always, compare fees, repayment terms, and the minimum draw amount. The draw is the amount of money a lender requires you to initially take from your equity.
The best home equity loan lenders may be easier to find because the fixed rate you earn will last the length of the repayment period. That means just one rate to focus on. And you’re getting a lump sum, so no draw minimums to consider.
HELOC and home equity loan rates today: FAQs
What is a good interest rate on a HELOC right now?
Rates vary significantly from one lender to the next. You may see rates from 6% to as much as 18%. It really depends on your creditworthiness and how diligent you are as a shopper. Currently, the national average for an adjustable-rate HELOC is 7.25%, and for a fixed-rate home equity loan, it’s 7.86%. Those are the rates to meet or beat.
Is it a good idea to get a HELOC or a home equity loan right now?
Interest rates fell for most of 2025. They are expected to remain steady or rise in 2026. So yes, it’s a good time to get a second mortgage. And with a HELOC or a HEL, you can use the cash drawn from your equity for things like home improvements, repairs, and upgrades. Or just about anything else.
What is the monthly payment on a $50,000 home equity line of credit?
If you withdraw the full $50,000 from a line of credit on your home and pay a 7.25% interest rate, for example, your monthly payment during the 10-year draw period would be about $302. That sounds good, but remember that the rate is usually variable, so it changes periodically, and your payments will increase during the 20-year repayment period. A HELOC essentially becomes a 30-year loan. HELOCs are best if you borrow and repay the balance within a much shorter period of time.