HELOC and home equity loan rates today, January 9, 2026: A new low mark for HELOCs

Core Insights - The national average rate for home equity lines of credit (HELOC) has reached a new low, with the average HELOC rate at 7.25%, down 19 basis points from the previous month, and the average home equity loan rate at 7.56%, down three basis points [2][11] Group 1: Market Trends - Homeowners have approximately $36 trillion in home equity, the highest recorded amount, which indicates a significant opportunity for lenders to offer HELOCs and home equity loans [3] - With mortgage rates remaining low, homeowners are less likely to sell their homes or refinance, making HELOCs and home equity loans attractive alternatives for accessing home equity [3] Group 2: Interest Rate Dynamics - The prime rate has decreased to 6.75% following three rate cuts by the Federal Reserve in 2025, prompting lenders to adjust their home equity product rates [7] - Lenders are offering competitive rates, such as FourLeaf Credit Union's introductory HELOC rate of 5.99% for the first 12 months on lines up to $500,000 [7] Group 3: Borrowing Considerations - Interest rates for HELOCs can vary significantly based on creditworthiness, with current rates ranging from 6% to 18%, and the national average being 7.25% [11] - It is considered a favorable time to obtain a HELOC or home equity loan due to the declining interest rates, which can be utilized for home improvements and other expenses [12] Group 4: Loan Structure and Payments - A $50,000 HELOC at a 7.50% interest rate would result in a monthly payment of approximately $313 during the 10-year draw period, but payments may increase during the repayment period due to variable rates [13]