HELOC rates today, November 26, 2025: Lower rates aren't out of the question before the end of the year

Core Insights - The average HELOC rate is currently below 8%, with indications that it may decrease further due to potential interest rate cuts by the Federal Reserve [1][2] - Home equity has reached a record high of nearly $36 trillion, providing homeowners with significant equity to leverage [2] - Homeowners are likely to retain their low-rate primary mortgages, making HELOCs an attractive option for accessing home equity without selling their homes [3] HELOC Rates and Trends - The average weekly HELOC rate is reported at 7.64%, based on applicants with a minimum credit score of 780 and a maximum combined loan-to-value ratio of 70% [2] - HELOC interest rates are influenced by the prime rate, which is currently at 7.00%, plus a margin set by lenders [4] - Lenders have flexibility in pricing HELOCs, and rates can vary significantly, making it essential for borrowers to shop around [5][10] HELOC Mechanics - A HELOC allows homeowners to access their home equity without giving up their low-rate primary mortgage, providing flexibility in borrowing [6] - Introductory rates are common, but borrowers should be aware of potential rate adjustments after the initial period [8][11] - The ability to borrow only what is needed and pay interest only on that amount is a key advantage of HELOCs [9] Financial Considerations - For a $50,000 HELOC at a 7.50% interest rate, the monthly payment during the draw period would be approximately $313, but rates are typically variable [12] - Homeowners can utilize HELOC funds for various purposes, including home improvements and personal expenses, but should be cautious about long-term debt [11]