HELOC rates today, December 19, 2025: Rates move lower, reflecting three Fed rate cuts this year

Core Insights - The average national rate on home equity lines of credit (HELOC) has decreased due to the Federal Reserve's rate cuts, approaching 7% [1] - Homeowners have a record amount of home equity, nearly $36 trillion, providing significant potential for HELOC utilization [2] HELOC Rates and Trends - As of December 19, 2025, the average weekly HELOC rate is 7.44%, based on high credit scores and favorable loan-to-value ratios [2] - Lenders are adjusting HELOC rates based on the prime rate, currently at 6.75%, plus a margin, leading to variable rates around 7.50% [4] - Introductory offers for HELOCs can be as low as 5.99% for the first 12 months, but will convert to variable rates thereafter [8] Homeowner Behavior and Market Dynamics - With mortgage rates remaining low, homeowners are less likely to sell their homes, making HELOCs an attractive option to access home equity without refinancing [3] - The flexibility of HELOCs allows homeowners to borrow as needed, making it a practical financial tool for various expenses [7] Lender Considerations - Lenders have discretion in pricing HELOCs, influenced by credit scores and debt levels, emphasizing the importance of shopping around for the best rates [5] - Homeowners should compare both interest rates and associated fees when selecting a lender for a HELOC [9] Financial Implications - A $50,000 HELOC at a 7.50% interest rate would result in monthly payments of approximately $313 during the draw period, but rates are variable and can increase over time [12] - Utilizing a HELOC can be beneficial for homeowners with low primary mortgage rates, allowing them to fund home improvements or other expenses without losing their favorable mortgage terms [11]