HELOC rates today, October 25, 2025: Downward momentum

Core Insights - The average HELOC rate is currently 7.75% and is expected to continue decreasing through the end of the year [1][2] - Homeowners have over $34 trillion in home equity, the third-largest amount on record, making HELOCs an attractive option for accessing funds without selling homes [3] - Lenders have flexibility in pricing HELOCs, and rates can vary significantly based on credit scores and other factors [4][5] HELOC Rates and Trends - The highest HELOC rate in 2025 was recorded in January, with a decrease of 31 basis points since then [2] - Current HELOC rates are influenced by the prime rate, which is at 7.25%, plus a margin set by lenders [4] - Introductory rates can be lower, such as FourLeaf Credit Union's 5.99% for the first 12 months, but will convert to a variable rate afterward [8] Home Equity Utilization - HELOCs allow homeowners to access their equity without refinancing their primary mortgage, which is beneficial when primary mortgage rates are low [6][12] - The flexibility of HELOCs enables homeowners to borrow only what they need, avoiding interest on unused credit [9] - Monthly payments on a $50,000 HELOC at a 7.75% interest rate would be approximately $323 during the draw period, but rates are typically variable [13] Considerations for Borrowers - Homeowners are encouraged to shop around for the best HELOC rates, as they can vary widely based on individual creditworthiness [5][11] - It is advisable for homeowners to consider the purpose of the HELOC, whether for home improvements or other expenses, and to be disciplined in repayment to avoid long-term debt [12]