HELOC rates today, December 1, 2025: More room to fall before the end of the year?

Core Insights - The national average HELOC rate is currently at a low of 7.64%, with potential for further decreases if the Federal Reserve lowers interest rates in December 2025 [1][2] - Home equity has reached a record high of nearly $36 trillion, indicating significant value tied up in residential properties [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 HELOC rate is 7.64%, based on applicants with a minimum credit score of 780 and a maximum combined loan-to-value ratio of 70% [2] - Lenders determine HELOC rates based on an index rate plus a margin, with the current prime rate at 7.00% [4] - Rates can vary significantly among lenders, ranging from nearly 6% to as high as 18%, depending on creditworthiness and shopping diligence [11] Lender Considerations - Lenders have flexibility in pricing HELOCs, and it is advisable for borrowers to shop around for the best rates and terms [5] - Introductory rates may be offered but typically convert to adjustable rates after a set period, which can be substantially higher [5][8] - The draw amount is the initial amount a lender requires to be taken from the equity, and borrowers should compare fees and repayment terms [8] HELOC Functionality - A HELOC allows homeowners to access their home equity without giving up their low-rate primary mortgage, providing flexibility in borrowing [6] - Borrowers can withdraw funds as needed, only paying interest on the amount borrowed, which can be beneficial for managing cash flow [9] - Monthly payments on a HELOC can vary; for example, a $50,000 draw at a 7.50% interest rate would result in a monthly payment of approximately $313 during the draw period [13] Current Market Conditions - FourLeaf Credit Union is currently offering a HELOC rate of 5.99% for the first 12 months on lines up to $500,000, highlighting competitive offerings in the market [8] - Homeowners with significant equity and low primary mortgage rates are in a favorable position to consider HELOCs for various financial needs, including home improvements or personal expenses [12]