HELOC and home equity loan rates Saturday, March 7, 2026: Absorbing a Fed rate pause

Core Insights - Homeowners are experiencing minimal changes in HELOC and home equity loan rates as the Federal Reserve maintains its interest rate pause, with expectations of no rate cuts before July [1] HELOC and Home Equity Loan Rates - The average HELOC rate is currently 7.20%, a decrease of three basis points from the previous month, while the average home equity loan rate is 7.47%, an increase of three basis points [2] - The 52-week low for HELOC was 7.19% in mid-January, and the low for home equity loans was 7.38% in early December 2025 [2] Market Conditions - Mortgage rates remain around 6%, leading homeowners with home equity and low primary mortgage rates to seek solutions like HELOCs or home equity loans to access their home’s growing value [3] Interest Rate Structure - HELOC and home equity loan rates differ from primary mortgage rates, being based on an index rate plus a margin, typically the prime rate, which is currently 6.75% [4] - Each lender has unique pricing methodologies for second mortgage products, making it essential for borrowers to shop around [5] Lender Offerings - Some lenders offer below-market introductory rates for HELOCs, such as FourLeaf Credit Union's 5.99% APR for the first 12 months on lines up to $500,000, which will convert to a variable rate afterward [8] - Home equity loans generally have fixed rates, making them easier to compare since they do not have introductory rates [6][9] Borrowing Considerations - Homeowners with significant equity and low primary mortgage rates may find it advantageous to obtain a HELOC or home equity loan for various uses, including home improvements [12] - For a $50,000 HELOC at a 7.25% interest rate, the monthly payment during the 10-year draw period would be approximately $302, but payments may increase during the repayment period due to variable rates [13]