How the Federal Reserve affects HELOCs and home equity loans

The Federal Reserve’s interest rate decisions influence what you pay for variable-rate home equity lines of credit (HELOCs) and new home equity loans. Let’s break down how the Fed’s monetary policy affects how much it’ll cost you to borrow against your home. Federal Reserve Jan. 2026 meeting Following a string of rate cuts near the tail end of 2025, the Federal Reserve held the line on interest rates at its first meeting of 2026. The central bank’s benchmark rate remains at a target range of 3.5-3.75%. Th ...