{"id":4557,"date":"2026-02-19T19:37:36","date_gmt":"2026-02-19T19:37:36","guid":{"rendered":"http:\/\/ft365.org\/index.php\/2026\/02\/19\/heloc-home-equity-rates-decline-to-3-year-lows-bankrate\/"},"modified":"2026-02-19T19:37:36","modified_gmt":"2026-02-19T19:37:36","slug":"heloc-home-equity-rates-decline-to-3-year-lows-bankrate","status":"publish","type":"post","link":"https:\/\/ft365.org\/index.php\/2026\/02\/19\/heloc-home-equity-rates-decline-to-3-year-lows-bankrate\/","title":{"rendered":"HELOC & Home Equity Rates Decline To 3-Year Lows | Bankrate"},"content":{"rendered":"
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Home equity rates fell this week, reaching their lowest levels in about three years. The $30,000 home equity line of credit fell one basis point to 7.31%, according to Bankrate\u2019s national survey of lenders. Meanwhile, the five-year $30,000 home equity loan fell three basis points to 7.89%.\u00a0<\/p>\n

While rates can influence the home equity product you decide to take, they\u2019re not the only factor at play. Homeowners generally hold substantial equity, but growth is moderating in some parts of the country, says Kenon Chen, executive vice president of strategy and growth for Clear Capital, a real estate analytics data firm. Prices are also softening, along with housing supply in some areas.<\/p>\n

\u201cIt\u2019s something for people to consider with the type of loan that they might take out,\u201d he says. \u201cAre they taking out a lump sum upfront with a closed-end home equity loan? [They should] get a clear understanding of where they\u2019re at with their loan-to-value ratio. Or if they\u2019re getting a home equity line of credit, they should consider the trajectory of their home prices as they\u2019re thinking about drawing on that credit line.\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>\n7.31%<\/td>\n7.44%<\/td>\n8.29%<\/td>\n7.96%<\/td>\n7.31%<\/td>\n<\/tr>\n
5-year home equity loan <\/td>\n7.89%<\/td>\n7.98%<\/td>\n8.41%<\/td>\n8.18%<\/td>\n7.89%<\/td>\n<\/tr>\n
10-year home equity loan<\/td>\n8.07%<\/td>\n8.16%<\/td>\n8.55%<\/td>\n8.34%<\/td>\n8.07%<\/td>\n<\/tr>\n
15-year home equity loan<\/td>\n8.06%<\/td>\n8.11%<\/td>\n8.50%<\/td>\n8.27%<\/td>\n8.06%<\/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, Bankrate\u2019s senior industry analyst Ted 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>\n7.31%<\/td>\n<\/tr>\n
Home equity loan<\/td>\n7.89%<\/td>\n<\/tr>\n
Credit card<\/td>\n19.60%<\/td>\n<\/tr>\n
Personal loan<\/td>\n12.15%<\/td>\n<\/tr>\n
Source: Bankrate national survey of lenders, Feb. 18<\/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

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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

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Mortgage Icon<\/title> <\/svg> <\/p>\n
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Home equity trends <\/p>\n

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