HELOC and home equity loan rates today, January 30, 2026: As the Fed pauses, so do home equity rates

Core Insights - The national average rates for second mortgage products, including home equity loans and HELOCs, are at multi-year lows, with the Federal Reserve maintaining a hold on interest rates, suggesting stability in the prime rate, a key factor in home equity lending [1] Group 1: Current Rates - The average HELOC rate is currently 7.25%, while the national average for home equity loans is 7.56%, based on applicants with a minimum credit score of 780 and a maximum combined loan-to-value ratio of less than 70% [2][8] - Homeowners have approximately $34 trillion in equity tied up in their homes as of Q3 2025, indicating significant potential for home equity lending [2] Group 2: Market Dynamics - With mortgage rates remaining in the low-6% range, homeowners are less likely to sell their homes or refinance, making HELOCs and home equity loans attractive alternatives for accessing home equity [3] - Interest rates for home equity products are determined by an index rate plus a margin, with the current prime rate at 6.75% [4] Group 3: Lender Considerations - Lenders have flexibility in pricing second mortgage products, and rates depend on factors such as credit score and debt levels, encouraging consumers to shop around for the best offers [5] - Introductory HELOC rates can be as low as 5.99% for the first year, but consumers should compare rates, fees, and repayment terms when selecting lenders [6] Group 4: Financial Implications - Interest rates fell throughout most of 2025 and are expected to remain steady into the first half of 2026, making it a favorable time for obtaining a second mortgage [10] - 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 rates are typically variable, which could lead to increased payments during the repayment period [11]