Home equity loan rates stayed put as the nation moves into mid-summer. The average rate on a $30,000 home equity line of credit (HELOC) was unchanged at 8.27 percent for the fourth straight week, according to Bankrate’s national survey of lenders. The average rate on the $30,000 home equity loan also held steady at 8.26 percent for the third week in a row.
Since June of this year, average rates of HELOCs and home equity loans have been hovering in the same range — and are almost identical. So, how can homeowners decide which home equity product is the best option for them?
It depends partly on the reason for borrowing. “Homeowners with substantial equity who know exactly how much they need to borrow are ideal candidates for home equity loans. These loans are best for one-time, large-scale expenses like a full kitchen remodel,” says Eduardo Berain, executive vice president of banking, investments and insurance at Frost Bank, a Texas-based lender.
But the borrower’s personal finances can be significant too. “Home equity loans are good options for homeowners with consistent cash flow,” Berain continues. “If a homeowner is expecting a financial windfall soon — for example, a bonus — a HELOC may be a better option.”
| Current | 4 weeks ago | One year ago | 52-week average | 52-week low |
|---|---|---|---|---|---|
HELOC | 8.27% | 8.22% | 9.17% | 8.53% | 7.90% |
5-year home equity loan | 8.26% | 8.25% | 8.60% | 8.40% | 8.23% |
10-year home equity loan | 8.42% | 8.40% | 8.74% | 8.54% | 8.38% |
15-year home equity loan | 8.35% | 8.33% | 8.73% | 8.47% | 8.32% |
What’s driving home equity rates today?
Rates on HELOCs and home equity loans are being driven primarily by two factors: lender competition for new customers and the Federal Reserve’s actions. The Fed especially impacts the cost of variable-rate products like HELOCs.
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 — especially those on HELOCs, potentially to their lowest level in three years.
Learn more: How the Federal Reserve affects HELOCs and home equity loans
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Current home equity rates vs. rates on other types of credit
Because HELOCs and home equity loans use your home as collateral, their rates tend to be much less expensive — more akin to current mortgage rates — than the interest charged on credit cards or personal loans, which aren’t secured.
Credit type | Average rate |
|---|---|
HELOC | 8.27% |
Home equity loan | 8.26% |
Credit card | 20.13% |
Personal loan | 12.64% |
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’s 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’s worth.
Even if you are able to secure a favorable rate from a lender, home equity products are relatively high-cost debt, notes McBride. “Many homeowners are sitting on a mountain of home equity, but borrowing against it is still costly, with the average rate still over 8 percent and many lenders charging double-digit interest rates,” he says. “This is not the low-cost form of borrowing that homeowners had become accustomed to for many years.
“Today’s rates are nothing to get excited about,” he adds. So if you must borrow, have a game plan for paying it back.”
Home equity trends
Real estate is Americans’ second-most popular long-term investment, according to Bankrate’s 2025 Long-Term Investment Survey.
HELOC withdrawals surged 22 percent in the first quarter, reaching nearly $25 billion, the highest first-quarter volume in 17 years, according to ICE Mortgage Technology.
As of March 2025, outstanding total HELOC balances were $381.3 billion, a 9.7% gain from the same time last year, according to Equifax.
Homeowner equity averaged about $400,000 per household in the fourth quarter of 2024, according to the Joint Center for Housing Studies of Harvard University.
Methodology
The Bankrate.com national survey of large lenders is conducted weekly. To conduct the National Average survey, Bankrate obtains rate information from the 10 largest banks and thrifts in 10 large U.S. markets. In the Bankrate.com national survey, our Market Analysis team gathers rates and/or yields on banking deposits, loans and mortgages. We’ve conducted this survey in the same manner for more than 30 years, and because it’s consistently done the way it is, it gives an accurate national apples-to-apples comparison.
