HELOC Rates Near 2026 Low as Home Equity Loan Costs Edge Down
HELOC adjustable rates fell to 7.21%, just two basis points above the 2026 low, while home equity loan averages dipped to 7.36%, offering homeowners cheaper borrowing options.
Home equity borrowing costs edged lower last week, with HELOC rates coming within striking distance of the 2026 low.
The average adjustable rate on a home equity line of credit (HELOC) fell to 7.21%, just two basis points above the 2026 trough of 7.19% recorded in mid-March, according to real estate data firm Curinos. Meanwhile, the national average fixed rate on a home equity loan dipped to 7.36%. Both figures are based on applicants with a minimum credit score of 780 and a maximum combined loan-to-value ratio of less than 70%.
For stock market investors, falling home equity rates can signal a more accommodative credit environment, which may support consumer spending and housing-related equities. Lower borrowing costs for homeowners could also reduce the risk of forced selling in the housing market, a factor that has weighed on homebuilder stocks and mortgage real estate investment trusts (REITs) in recent quarters. Traders tracking interest-rate-sensitive sectors should monitor how these trends interact with broader Federal Reserve policy expectations. For current pricing on housing-related stocks and REITs, check NowPrice's equities page.
Looking ahead, the trajectory of HELOC and home equity loan rates will depend on the Fed's next moves on short-term interest rates. With inflation data and employment reports due in the coming weeks, any shift in rate-cut expectations could quickly feed into consumer borrowing costs. Homeowners and investors alike will watch for whether HELOC rates can break below the 7.19% floor, which would mark a new cycle low and potentially spur additional home equity extraction.