The home equity lending landscape painted a rather patchy picture over the past week. Bankrate’s nationwide lender poll reveals a sharp climb, an 80 basis point surge, pushing the average rate on a $30,000 HELOC up to 8.90%. This spike owes more to a heavyweight lender pulling the plug on their bargain introductory offers than any fresh economic turbulence. Meanwhile, the 5-year, $30,000 fixed-rate home equity loan held steady at 8.22% — marking its best level for the year.
HELOC Rates: A Rollercoaster Poised for a Dip?
Fresh promotional deals might soon deflate HELOC rates, although even if they don’t budge, the core borrowing truths remain. Stephen Kates, Bankrate’s Financial Analyst, advises caution: “Borrowers should seize the chance to catch a break on borrowing costs if timing has been the barrier. Still, diving into the fine print and grasping the limits of these offers is vital. Don’t get blindsided when those introductory perks expire, and make sure all your ducks are in a row regarding eligibility.”
Snapshot of Current Home Equity Rates
| 5-Year Home Equity Loan | 8.22% | 8.25% | 8.52% | 8.35% | 8.22% |
| 10-Year Home Equity Loan | 8.37% | 8.41% | 8.61% | 8.49% | 8.37% |
| 15-Year Home Equity Loan | 8.24% | 8.28% | 8.57% | 8.41% | 8.24% |
Note: These rates correspond to loans or lines totaling $30,000.
What’s Fueling Today’s Home Equity Rates?
The current rate climate is shaped largely by two heavy hitters: the tussle between lenders hunting fresh clientele, and the Federal Reserve’s monetary maneuvers—especially relevant for variable-rate products like HELOCs.
Despite a notable cooldown from their peaks in 2024, HELOC rates have bounced back somewhat since spring when they dipped below 8%. Fixed-rate home equity loans have similarly retracted from earlier highs, maintaining a more consistent footing.
Taking a quick detour into credit costs:
- HELOC average rate: 8.90%
- Home equity loan average rate: 8.22%
Remember, the exact rate you’ll snag depends on more than just the headline number—it’s a cocktail of your credit profile, financial standing, your home’s market value, and how much equity you hold. Typically, lenders cap total borrowing against your home at 80-85% of its appraised worth, factoring in all loans including your mortgage.
Heads up: While home equity products might appear tempting, they remain a relatively pricey form of debt, so weigh your options carefully.
Unlocking the Value Nesting in Your Home
Opting for a fixed-rate home equity loan means receiving a lump sum upfront paired with a straightforward, predictable repayment timetable—perfect for borrowers craving budget certainty.
Trends in Home Equity Worth
Homeowners holding mortgages have seen their equity stakes swell by approximately 142% nationwide since 2020, a staggering climb that has transformed borrowing potential.
Leveraging technology, lenders increasingly rely on automated valuation models (AVMs), which accounted for 35% of home equity loan assessments in early 2024—a 20-point jump over the previous year, per Corporate Settlement Solutions.
Looking ahead, the Mortgage Bankers Association forecasts outstanding home equity debt to rise 6.6% in 2025 and follow up with a more modest 4.1% increase in 2026.
The first quarter of 2025 saw a 12% surge in the home equity market, marking the most robust year-over-year growth since 2022, according to TransUnion.
Survey Methodology Explained
Bankrate.com’s weekly national survey of major lenders scrupulously collects rate info from the 10 largest banks and thrifts across 10 major U.S. regions. For over three decades, this consistent approach has provided an apples-to-apples comparison of fluctuating home equity rates, deposits, loans, and mortgage yields, ensuring reliable and meaningful national insights.
