HELOC and home equity loan rates today, March 17, 2026: Fed unlikely to help home equity rates

Core Insights - National average rates for home equity lines of credit (HELOC) and home equity loans (HEL) are expected to remain stable, with no anticipated interest rate cuts from the Federal Reserve in the near term, despite second mortgage rates being close to three-year lows [1] Group 1: Current Rates - The average monthly adjustable HELOC rate is currently 7.20%, while the national average rate for a home equity loan is 7.47%, based on applicants with a minimum credit score of 780 and a maximum combined loan-to-value ratio of less than 70% [2] - The prime rate, which influences second mortgage rates, is currently at 6.75%, and lenders may add a margin to this rate, resulting in variable rates for HELOCs starting at around 7.50% [5] Group 2: Product Comparison - A HELOC allows homeowners to draw cash from an approved line of credit and pay it off, while a home equity loan provides a lump sum [3] - Home equity loans typically have fixed interest rates, making them easier to manage over the repayment period, whereas HELOCs may have variable rates that can change [12][7] Group 3: Lender Considerations - Lenders have flexibility in pricing second mortgage products, and it is advisable for borrowers to shop around for the best rates, which can vary significantly based on creditworthiness and other factors [6] - Some lenders may offer below-market introductory rates for HELOCs, which can last for a limited time before converting to a variable rate [9] Group 4: Market Conditions - Homeowners with low primary mortgage rates and significant equity may find HELOCs or HELs appealing, as current rates are among the lowest in years, allowing them to access home equity without sacrificing favorable primary mortgage rates [14] - The national average for HELOCs is 7.20% and 7.47% for home equity loans, serving as a benchmark for potential borrowers [13]