With falling rates, homeowners are warming to HELOCs and home equity loans. “While borrowers have been relatively timid in tapping the equity, declining borrowing rates could make tapping home equity relatively more affordable in the future,” said Cotality chief economist Dr. Selma Hepp, in an analysis.
The average HELOC rate is 7.20%, down three basis points from one month ago, according to real estate analytics firm Curinos. The 52-week HELOC low was 7.19% in mid-January. The national average rate on a home equity loan is 7.47%, up three basis points from last month. The low was 7.38% in early December 2025.
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%.
With mortgage rates remaining near 6%, homeowners with home equity and a low primary mortgage rate may feel the…
