The average rate for home equity lines of credit has reached its lowest point in over a year, according to data from Curinos. On Friday, January 16, 2026, the national average HELOC rate stood at 7.25%, a decline of 19 basis points from the previous month. Home equity loan rates averaged 7.56%, down three basis points.
These figures apply to applicants with credit scores of at least 780 and a combined loan-to-value ratio under 70%. The Federal Reserve reported that homeowners held nearly $36 trillion in home equity by the end of the second quarter of 2025, marking a record high.
With mortgage rates lingering in the low-6% range, many homeowners are reluctant to sell or refinance primary mortgages locked at lower rates. A HELOC or home equity loan offers an alternative to access this equity without disturbing existing mortgages.
Lenders determine rates for these second mortgages by adding a margin to an index, often the prime rate. Following three Federal Reserve rate cuts in 2025, the prime rate fell to 6.75%, prompting lenders to reprice their products. For instance, FourLeaf Credit Union is currently advertising a HELOC with an introductory APR of 5.99% for 12 months on lines up to $500,000.
Rates can vary widely between lenders, from around 6% to 18%, depending on creditworthiness and shopping diligence. HELOC rates are typically variable, while home equity loan rates are fixed. Borrowers are advised to compare multiple lenders, focusing on fees, repayment terms, and draw requirements.