{"id":4971,"date":"2026-03-26T08:37:58","date_gmt":"2026-03-26T08:37:58","guid":{"rendered":"http:\/\/ft365.org\/index.php\/2026\/03\/26\/heloc-rates-hit-lowest-level-since-2022-bankrate\/"},"modified":"2026-03-26T08:37:58","modified_gmt":"2026-03-26T08:37:58","slug":"heloc-rates-hit-lowest-level-since-2022-bankrate","status":"publish","type":"post","link":"https:\/\/ft365.org\/index.php\/2026\/03\/26\/heloc-rates-hit-lowest-level-since-2022-bankrate\/","title":{"rendered":"HELOC Rates Hit Lowest Level Since 2022 | Bankrate"},"content":{"rendered":"
\n

A big drop in HELOC rates in the latest week. The $30,000 home equity line dropped 13 basis points to 7.04%, its lowest level since 2022, according to Bankrate\u2019s national survey of lenders. In contrast, the five-year $30,000 home equity loan was unchanged, holding at 7.85%.\u00a0<\/p>\n

Both HELOCs and home equity loans are the most affordable they\u2019ve been in years, making them a more competitive borrowing option.<\/p>\n

\u201cHomeowners have a tremendous amount of equity in their property,\u201d says Michael Pearson, senior vice president of business development at A&D Mortgage. \u201cMuch of that equity has been sitting in place for a number of years now. Families have plans, whether those are upgrades, major improvements or upsizing or downsizing properties. There are just a ton of people who are waiting for something to change to take action.\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>\n7.04%<\/td>\n7.32%<\/td>\n8.01%<\/td>\n7.88%<\/td>\n7.04%<\/td>\n<\/tr>\n
5-year home equity loan <\/td>\n7.85%<\/td>\n7.87%<\/td>\n8.37%<\/td>\n8.13%<\/td>\n7.84%<\/td>\n<\/tr>\n
10-year home equity loan<\/td>\n8.00%<\/td>\n8.07%<\/td>\n8.50%<\/td>\n8.29%<\/td>\n7.99%<\/td>\n<\/tr>\n
15-year home equity loan<\/td>\n7.97%<\/td>\n8.06%<\/td>\n8.44%<\/td>\n8.22%<\/td>\n7.97%<\/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. At the Fed\u2019s latest policy-setting meeting in March, the central bank once again left rates unchanged, as it continues to monitor inflation and the job market.<\/p>\n

\u201cThe Fed standing pat should keep home equity borrowing rates more or less unchanged,\u201d says Bankrate senior industry analyst Ted Rossman. \u201cThey\u2019re currently hovering around three-year lows, so while borrowers would surely welcome lower rates, current levels aren\u2019t too bad relative to the recent past. This situation could persist for the balance of the year.\u201d <\/p>\n

Inflation and geopolitical tensions are also expected to impact rates. At the start of the year, Rossman predicted the Fed would deliver three quarter-point cuts in 2026. However, because of stubborn inflation and the ongoing war in Iran, Rossman no longer believes the Fed\u2019s rate cuts will be that aggressive. \u201cIn other words, rates probably won\u2019t move much for the foreseeable future,\u201d he says.<\/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>\n7.04%<\/td>\n<\/tr>\n
Home equity loan<\/td>\n7.85%<\/td>\n<\/tr>\n
Credit card<\/td>\n19.58%<\/td>\n<\/tr>\n
Personal loan<\/td>\n12.27%<\/td>\n<\/tr>\n
Source: Bankrate national survey of lenders, March <\/em>25<\/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 also 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