HELOC and home equity loan rates today, March 18, 2026: With the Fed on hold, rates are too

Core Insights - Home equity lines of credit (HELOC) and home equity loan rates are expected to remain stable in the near term due to the Federal Reserve pausing interest rate cuts, keeping the prime rate unchanged [1] Group 1: Current Rates - The national average monthly adjustable rate for HELOCs is currently 7.20%, while the average fixed rate for home equity loans is 7.47%, based on applicants with a minimum credit score of 780 and a maximum combined loan-to-value ratio of 70% [2][9] - The prime rate is currently set at 6.75%, which influences the pricing of second mortgage products like HELOCs and home equity loans [3] Group 2: Pricing Methodology - Home equity interest rates are determined differently than primary mortgage rates, with second mortgage rates based on the prime rate plus a margin, which varies by lender [3] - Lenders have different methodologies for pricing second mortgage products, making it essential for borrowers to shop around for the best rates [4] Group 3: Lender Options - FourLeaf Credit Union is currently offering a HELOC rate of 5.99% for the first 12 months on lines up to $500,000, which will convert to a variable rate of 7.25% after one year [7] - The best HELOC lenders typically offer low fees, fixed-rate options, and generous credit lines, allowing borrowers to utilize their home equity flexibly [6] Group 4: Considerations for Borrowers - It may be a favorable time to consider obtaining a HELOC or home equity loan, as borrowers can maintain their low primary mortgage rates while accessing cash for various needs [11] - 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 borrowers should be aware of the variable nature of the rate [12]