{"id":1127,"date":"2025-07-02T20:55:14","date_gmt":"2025-07-02T20:55:14","guid":{"rendered":"https:\/\/ft365.org\/index.php\/2025\/07\/02\/helocs-and-home-equity-loan-rates-flat-this-week-bankrate\/"},"modified":"2025-07-02T20:55:14","modified_gmt":"2025-07-02T20:55:14","slug":"helocs-and-home-equity-loan-rates-flat-this-week-bankrate","status":"publish","type":"post","link":"http:\/\/ft365.org\/index.php\/2025\/07\/02\/helocs-and-home-equity-loan-rates-flat-this-week-bankrate\/","title":{"rendered":"HELOCs And Home Equity Loan Rates Flat This Week | Bankrate"},"content":{"rendered":"
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An uneventful week for home equity rates. The average rate on a $30,000 home equity line of credit (HELOC) was unchanged at 8.27 percent, according to Bankrate\u2019s national survey of lenders. The average rate on the $30,000 home equity loan also held steady at 8.26 percent.<\/p>\n

Since the beginning of June, HELOCs and home equity loan rates have been nearly in lockstep \u2014 a situation we haven\u2019t seen since 2023. Tai Christian, co-founder and president of Arrive Home, a Utha-based facilitator of national affordable housing programs, says it\u2019s anyone\u2019s guess how long the parity will last. Whether one ends up being more affordable than the other depends largely on the Federal Reserve, which \u201cdoesn\u2019t meet again until the end of the month to decide if rates will change,\u201d she says. \u201cAt this point, both remain better options when compared to the interest rates on alternatives, such as credit cards.\u201d<\/p>\n

\n\n\n\n\n\n\n\n\n\n\n
\u00a0<\/th>\nCurrent<\/th>\n4 weeks ago<\/th>\nOne year ago<\/th>\n52-week average<\/th>\n52-week low<\/th>\n<\/tr>\n<\/thead>\n
HELOC<\/td>\n8.27%<\/td>\n8.27%<\/td>\n9.17%<\/td>\n8.55%<\/td>\n7.90%<\/td>\n<\/tr>\n
5-year home equity loan <\/td>\n8.26%<\/td>\n8.25%<\/td>\n8.60%<\/td>\n8.41%<\/td>\n8.23%<\/td>\n<\/tr>\n
10-year home equity loan<\/td>\n8.42%<\/td>\n8.40%<\/td>\n8.74%<\/td>\n8.54%<\/td>\n8.38%<\/td>\n<\/tr>\n
15-year home equity loan<\/td>\n8.35%<\/td>\n8.33%<\/td>\n8.73%<\/td>\n8.48%<\/td>\n8.32%<\/td>\n<\/tr>\n<\/tbody>\n
Note: The home equity rates in this survey assume a line or loan amount of $30,000.<\/em><\/td>\n<\/tr>\n<\/tfoot>\n<\/table>\n<\/div>\n

What\u2019s driving home equity rates today?<\/h2>\n

Rates on HELOCs and home equity loans are being driven primarily by two factors: lender competition for new customers and the Federal Reserve\u2019s actions. The Fed especially impacts the cost of variable-rate products like HELOCs.<\/p>\n

Both HELOCs and home equity loans have declined substantially from their highs reached at the beginning of 2024, although they have moved off the lows they achieved this year. Bankrate Chief Financial Analyst Greg McBride still forecasts that rates will decline in 2025 \u2014 especially those on HELOCs, potentially to their lowest level in three years.<\/p>\n

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Unlock your home\u2019s value <\/h3>\n

Achieve your financial goals with predictable payments on a lump-sum home equity loan.<\/p>\n

Explore offers <\/p>\n<\/div><\/div>\n

Current home equity rates vs. rates on other types of credit<\/strong> <\/h3>\n

Because HELOCs and home equity loans use your home as collateral, their rates tend to be much less expensive \u2014 more akin to current mortgage rates \u2014 than the interest charged on credit cards or personal loans, which aren\u2019t secured.<\/p>\n

\n\n\n\n\n\n\n\n\n\n\n
\u00a0Credit type<\/th>\nAverage rate<\/th>\n<\/tr>\n<\/thead>\n
HELOC<\/td>\n8.27%<\/td>\n<\/tr>\n
Home equity loan<\/td>\n8.26%<\/td>\n<\/tr>\n
Credit card<\/td>\n20.13%<\/td>\n<\/tr>\n
Personal loan<\/td>\n12.65%<\/td>\n<\/tr>\n<\/tbody>\n
Source: Bankrate national survey of lenders, July 2<\/em> <\/td>\n<\/tr>\n<\/tfoot>\n<\/table>\n<\/div>\n

Of course, the individualized offer you receive on a particular HELOC or new home equity loan reflects additional factors like your creditworthiness and financials. Then there\u2019s the value of your home and your ownership stake. Lenders generally limit all your home-based loans (including your mortgage) to a maximum 80 to 85 percent of your home\u2019s worth. <\/p>\n

Even if you are able to secure a good rate from a lender, home equity products are still relatively high-cost debt, notes Rossman. \u201cWith average home equity loan and line of credit rates in the 8 percent range right now, that\u2019s close to the border of what distinguishes between lower- and higher-cost debt,\u201d he says. \u201cIt\u2019s not nearly as low as the sub-4 percent rates we saw three years ago, but not as high as the 10+ percent rates that we observed a year and a half ago.\u201d<\/p>\n