HELOC and home equity loan rates Sunday, March 8, 2026: Seasonal demand grows

Core Insights - The onset of daylight saving time increases interest in home equity lines of credit (HELOCs) and home equity loans as homeowners look to enhance their properties [1] Interest 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 HELOCs was 7.19% in mid-January, and the low for home equity loans was 7.38% in early December 2025 [2] Homeowner Considerations - Homeowners with low primary mortgage rates may find it challenging to access their home's increasing value, making HELOCs or home equity loans a viable option [3] - Home equity interest rates differ from primary mortgage rates, typically based on an index rate plus a margin, with the current prime rate at 6.75% [4] Lender Flexibility - Lenders have flexibility in pricing second mortgage products, and rates can vary based on credit score, debt levels, and the loan-to-value ratio [5] - HELOCs may include introductory rates that last for a limited time, after which rates can become adjustable [5] Loan Characteristics - Home equity loans generally do not have introductory rates, providing a fixed rate throughout the loan term [6] - The best HELOC lenders offer low fees, fixed-rate options, and generous credit lines, allowing homeowners to utilize their equity as needed [7] Current Offers - LendingTree currently offers a HELOC APR as low as 6.13% for a credit line of $150,000, but borrowers should be aware of the variable nature of HELOC interest rates [8] - Home equity loans provide a fixed rate for the duration of the repayment period, simplifying the borrowing process [9] Market Trends - The national average for HELOCs is 7.20% and 7.47% for home equity loans, with rates varying significantly based on individual creditworthiness [11] - For homeowners with substantial equity and low primary mortgage rates, now is considered an advantageous time to secure a HELOC or home equity loan for home improvements [12]