HELOC and home equity loan rates today, March 31, 2026: 97% of tappable equity unused, report says

Core Insights - Consumer demand for home equity lines of credit (HELOCs) and home equity loans (HELs) is at its highest since 2023, with lenders issuing over 653,000 new home equity loans totaling $40 billion and authorizing 1.5 million HELOCs worth $271 billion in 2025, despite 97% of tappable equity remaining unused last year [1] Group 1: Current Market Conditions - The average monthly adjustable HELOC rate is 7.20%, while the national average for a home equity loan is a fixed rate of 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] - With mortgage rates near 6.5%, homeowners with significant home equity may find HELOCs or HELs appealing to access their home’s growing value without sacrificing their low primary mortgage rates [4] - Home equity interest rates differ from primary mortgage rates, with second mortgage rates based on an index rate plus a margin, currently influenced by the prime rate at 6.75% [5] Group 2: Loan Features and Considerations - HELOCs allow homeowners to draw cash from an approved line of credit, while home equity loans provide a lump sum, making the choice dependent on the intended use of the funds [3] - Lenders have flexibility in pricing second mortgage products, and it is advisable for consumers to shop around for the best rates, which can vary significantly based on creditworthiness and debt levels [6] - Home equity loans offer the benefit of fixed interest rates, making them easier to manage over the repayment period, while HELOCs may include introductory rates that can change after a set period [7][9] Group 3: Financial Implications - The national average for HELOCs is 7.20% and 7.47% for home equity loans, with rates varying widely based on individual credit profiles [13] - For homeowners with low primary mortgage rates and substantial equity, now may be an opportune time to consider HELOCs or HELs, as current rates are among the lowest in years [14] - A $50,000 HELOC at a 7.25% interest rate would result in a monthly payment of approximately $302 during the 10-year draw period, but payments may increase during the repayment period due to variable rates [15]