{"id":4297,"date":"2026-01-29T03:37:51","date_gmt":"2026-01-29T03:37:51","guid":{"rendered":"https:\/\/ft365.org\/index.php\/2026\/01\/29\/home-equity-and-heloc-rates-hold-at-three-year-low-bankrate\/"},"modified":"2026-01-29T03:37:51","modified_gmt":"2026-01-29T03:37:51","slug":"home-equity-and-heloc-rates-hold-at-three-year-low-bankrate","status":"publish","type":"post","link":"https:\/\/ft365.org\/index.php\/2026\/01\/29\/home-equity-and-heloc-rates-hold-at-three-year-low-bankrate\/","title":{"rendered":"Home Equity And HELOC Rates Hold At Three-Year Low | Bankrate"},"content":{"rendered":"
\n

No movement in home equity rates, as the Federal Reserve left interest rates unchanged at its first meeting of 2026. <\/p>\n

The $30,000 home equity line of credit and the five-year $30,000 home equity loan were flat for the week, remaining at 7.44% and 7.92%, respectively, according to Bankrate\u2019s national survey of lenders. As home equity rates hover at a three-year-low, Bankrate\u2019s senior industry analyst Ted Rossman explains why conditions are improving for home equity borrowers.\u00a0<\/p>\n

\u201cThe current HELOC average, 7.44%, is the lowest in more than three years,\u201d he says. \u201cIt\u2019s almost three percentage points lower than it was two years ago, and there\u2019s a good chance that figure will go under 7% this year for the first time since Sept. 2022. Also, many homeowners are sitting on record amounts of home equity.\u201d<\/p>\n

\n\n\n\n\n\n\n\n\n
\u00a0<\/strong><\/td>\nCurrent<\/strong><\/td>\n4 weeks ago<\/strong><\/td>\nOne year ago<\/strong><\/td>\n52-week average<\/strong><\/td>\n52-week low<\/strong><\/td>\n<\/tr>\n
HELOC<\/td>\n7.44%<\/td>\n7.63%<\/td>\n8.26%<\/td>\n8.02%<\/td>\n7.44%<\/td>\n<\/tr>\n
5-year home equity loan <\/td>\n7.92%<\/td>\n7.99%<\/td>\n8.44%<\/td>\n8.21%<\/td>\n7.92%<\/td>\n<\/tr>\n
10-year home equity loan<\/td>\n8.09%<\/td>\n8.17%<\/td>\n8.57%<\/td>\n8.37%<\/td>\n8.09%<\/td>\n<\/tr>\n
15-year home equity loan<\/td>\n8.09%<\/td>\n8.12%<\/td>\n8.52%<\/td>\n8.29%<\/td>\n8.09%<\/td>\n<\/tr>\n
Note: The home equity rates in this survey assume a line or loan amount of $30,000.<\/em><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

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

Home equity rates are driven primarily by two factors \u2014 Federal Reserve policy and long-term inflation expectations. The Fed left interest rates unchanged at its January meeting, as it continues to monitor inflation and the job market. Looking ahead to the rest of the year, Rossman forecasts the Fed will deliver three quarter-point cuts in 2026.<\/p>\n

\u201cInflation continues to moderate, albeit slowly, and the job market appears to be stabilizing after a run-up in the unemployment rate,\u201d he says. \u201cRisks appear fairly balanced at the moment, and the Fed will likely take some time to determine its next move. We\u2019re soon to get a new Fed Chairman, as well.\u201d<\/p>\n

Current home equity rates vs. rates on other types of credit<\/h2>\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\u00a0mortgage 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
Credit type<\/strong><\/td>\nAverage rate<\/strong><\/td>\n<\/tr>\n
HELOC<\/td>\n7.44%<\/td>\n<\/tr>\n
Home equity loan<\/td>\n7.92%<\/td>\n<\/tr>\n
Credit card<\/td>\n19.61%<\/td>\n<\/tr>\n
Personal loan<\/td>\n12.26%<\/td>\n<\/tr>\n
Source: Bankrate national survey of lenders, Jan. 28<\/em><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

While average rates are useful to know, the individual\u00a0offer you receive\u00a0on 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 the size of your ownership stake. Lenders generally limit all your home loans (including your mortgage) to a maximum of 80% to 85% of your home\u2019s worth.<\/p>\n

Keep in mind: Even if you\u2019re able to secure a favorable rate from a lender, home equity products are still relatively high-cost debt.<\/p>\n

\n

\"photo<\/p>\n

\n

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

A fixed-rate home equity loan offers a lump-sum payout and a predictable repayment schedule. <\/p>\n

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

\n

Mortgage Icon<\/title> <\/svg> <\/p>\n
\n

Home equity trends <\/p>\n

\n