HELOC rates today, December 17, 2025: Home equity lending highest since 2008

Core Insights - Average HELOC rates are declining, leading to the highest demand for home equity lending since 2008, with over 557,000 new home equity loans totaling nearly $31.6 billion originated through Q3 2025 [1] - Homeowners have a record amount of equity in their homes, nearly $36 trillion at the end of Q2 2025, the highest ever reported [2] - With mortgage rates around 6%, homeowners are likely to retain their low-rate primary mortgages, making HELOCs an attractive alternative for accessing home equity [3] HELOC Rates and Pricing - The average weekly HELOC rate is currently 7.44%, 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 determined by an index rate plus a margin, with the prime rate recently falling to 6.75%, leading to potential rates around 7.50% [4] - Lenders have flexibility in pricing HELOCs, and rates can vary significantly based on credit score, debt levels, and home value [5] HELOC Functionality - A HELOC allows homeowners to access equity without giving up their low-rate primary mortgage, providing flexibility in borrowing and repayment [6] - Introductory rates are common, such as FourLeaf Credit Union's offering of 5.99% for 12 months, which later adjusts to a variable rate of 7.25% [7] - The advantage of a HELOC is that interest is only paid on the amount borrowed, allowing homeowners to keep some credit available for future needs [8] Current Market Considerations - Rates for HELOCs can range from nearly 6% to as high as 18%, depending on individual creditworthiness and lender offerings [9] - For homeowners with low primary mortgage rates and significant equity, now is considered an optimal time to obtain a HELOC for various uses, including home improvements or personal expenses [10] - A typical monthly payment for a $50,000 HELOC at a 7.50% interest rate would be approximately $313 during the draw period, but rates are variable and can increase over time [11]