Rates for home equity lines of credit and home equity loans are near multi-year lows. With the next Federal Reserve meeting still one month away — and further interest rate cuts not likely soon — second mortgage rates are expected to remain mostly unchanged. HELOC and home equity loan rates: Wednesday, February 18, 2026 Today's national average monthly HELOC rate is 7.23%, down just two basis points from one month ago. The average rate on a home equity loan is 7.44%, down 12 basis points from last month, ...

Core Insights - Home equity rates have seen slight increases, with the $30,000 home equity line of credit rising to 7.32% and the five-year home equity loan increasing to 7.92% [1][2] - Despite the recent rise, home equity rates remain near three-year lows, making them attractive for homeowners, particularly those looking to consolidate debt [2][4] - The primary drivers of home equity rates are Federal Reserve policy and long-term inflation expectations, with forecasts indicating potential interest rate cuts in the future [3][4] Current Home Equity Rates - The current average rates for home equity products are as follows: HELOC at 7.32%, five-year home equity loan at 7.92%, ten-year home equity loan at 8.09%, and fifteen-year home equity loan at 8.09% [2][5] - Historical comparisons show that HELOC rates have decreased from 8.29% one year ago, while five-year home equity loans have dropped from 8.41% [2] Comparison with Other Credit Types - Home equity rates are significantly lower than rates for unsecured credit types, with credit cards averaging 19.60% and personal loans at 12.16% [5] - The use of home as collateral for HELOCs and home equity loans results in lower interest rates compared to unsecured loans [4][5] Market Context - The Federal Reserve's current stance on interest rates is cautious, with a focus on monitoring inflation and the job market, which influences home equity rates [3][4] - The job market appears to be stabilizing, and inflation is moderating, contributing to a balanced risk environment for future rate decisions [4]

Core Insights - Home equity lines of credit (HELOC) and home equity loan (HEL) rates are currently at multi-year lows, with average HELOC rates at 7.25% and HEL rates at 7.56% as of February 3, 2026 [2][13] - The Federal Reserve's interest rate policies may stabilize home equity rates, as further cuts are not anticipated in the near term [1] Group 1: Market Conditions - Second mortgage rates peaked in late 2023 and have generally trended lower since then [1] - Homeowners have approximately $34 trillion in equity locked in their homes, which can be accessed through second mortgages [3] Group 2: Loan Types and Features - A HELOC allows homeowners to draw cash as needed, while a home equity loan provides a lump sum [3] - HELOC rates are typically variable and may include introductory rates that last for a limited time, while HELs usually have fixed rates [5][7] Group 3: Lender Considerations - Lenders have flexibility in pricing second mortgage products, making it essential for borrowers to shop around for the best rates [6] - Factors influencing rates include credit score, debt levels, and the amount drawn compared to home value [6] Group 4: Financial Implications - Homeowners with low primary mortgage rates may find HELOCs or HELs appealing as they can access home equity without losing favorable mortgage terms [4][14] - The national average for HELOCs is 7.25%, while HELs average 7.56%, serving as benchmarks for potential borrowers [2][13]

Core Insights - Home equity rates have reached their lowest levels in three years, with the five-year home equity loan at 7.92% and the home equity line of credit (HELOC) at 7.44% [1][3] Group 1: Current Rates and Trends - The benchmark five-year home equity loan decreased by six basis points to 7.92%, while the HELOC rate remained unchanged at 7.44% [1] - Over the past four weeks, the HELOC rate has decreased from 7.63% to 7.44%, and the five-year home equity loan rate has dropped from 7.99% to 7.92% [3] - The 52-week average for HELOCs is 8.04%, and for the five-year home equity loan, it is 8.22% [3] Group 2: Factors Influencing Rates - Home equity rates are primarily influenced by Federal Reserve policy and long-term inflation expectations [4] - The Federal Reserve's rate cuts in 2025 have contributed to the current low levels of HELOCs and home equity loans [4] - Forecasts suggest that home equity rates may continue to decline if the Fed implements projected rate cuts in 2026 [4] Group 3: Market Demand and Economic Conditions - Increased demand for home equity borrowing is noted due to rising homeowner equity, growing household debt, and strong renovation activity [2] - The current economic conditions are expected to maintain a favorable environment for home equity borrowing, potentially applying downward pressure on rates [5] - HELOCs and home equity loans are comparatively less expensive than unsecured credit options like credit cards and personal loans [6]

Core Insights - National average HELOC and home equity loan rates have decreased, with HELOC rates at 7.25% and home equity loan rates at 7.56% [2][11] - Homeowners have approximately $36 trillion in equity that remains inaccessible due to stagnant mortgage rates, making HELOCs and home equity loans viable options for accessing this value [3] HELOC and Home Equity Loan Rates - The average monthly HELOC rate has dropped by 19 basis points from the previous month, while home equity loan rates have decreased by three basis points [2] - Rates are based on applicants with a minimum credit score of 780 and a maximum combined loan-to-value ratio of less than 70% [2] Market Dynamics - The prime rate has recently fallen to 6.75%, affecting second mortgage rates, which are typically based on this index plus a margin [4] - Lenders have flexibility in pricing second mortgage products, and rates can vary significantly based on individual credit scores and debt levels [5] Loan Features - HELOCs often come with introductory rates that may last for a limited time before becoming adjustable, while home equity loans typically have fixed rates [6][9] - The best HELOC lenders offer low fees and generous credit lines, allowing homeowners to draw from their equity as needed [7] Current Offers - FourLeaf Credit Union is currently offering a HELOC APR of 5.99% for the first 12 months on lines up to $500,000, after which the rate will convert to a variable rate [8] - Home equity loans may be easier to find due to their fixed rates, which remain constant throughout the repayment period [9] Financial Considerations - For homeowners with low primary mortgage rates and significant equity, now may be an optimal time to obtain a HELOC or home equity loan for purposes such as home improvements [12] - A $50,000 home equity line of credit at a 7.50% interest rate would result in a monthly payment of approximately $313 during the draw period, but rates are typically variable [13]

Core Insights - HELOC rates have significantly decreased, reaching three-year lows, with the average rate dropping to 7.44% due to a major lender resuming promotions [1] - The overall trend indicates a falling-rate environment for HELOCs and home equity loans, with expectations of rates potentially approaching 7% by the end of the year [2] Rate Comparisons - Current HELOC rate is 7.44%, down from 7.63% four weeks ago and 8.28% a year ago, with a 52-week average of 8.05% and a low of 7.44% [2] - The five-year home equity loan rate is currently at 7.98%, slightly up from 7.99% four weeks ago and down from 8.40% a year ago [2] Influencing Factors - Home equity rates are primarily influenced by Federal Reserve policy and long-term inflation expectations, with recent Fed rate cuts contributing to lower HELOC and home equity loan rates [3] - The Fed's current focus on labor market conditions rather than inflation may lead to increased home equity borrowing and potentially lower rates [4] Comparative Rates - HELOCs and home equity loans are significantly cheaper than unsecured credit options, with average rates of 19.64% for credit cards and 12.19% for personal loans [5] - Lenders typically limit total home loans to a maximum of 80% to 85% of a home's value, affecting individual offers for HELOCs and home equity loans [5]

Core Insights - Home equity line of credit (HELOC) rates have increased significantly, with the average rate rising by 59 basis points to 8.22% as a major lender ended promotions [1] - The benchmark five-year home equity loan rate has slightly decreased to 7.97% [1] Rate Trends - Current HELOC rate is 8.22%, compared to 7.81% four weeks ago and 8.27% one year ago, with a 52-week average of 8.07% and a low of 7.63% [3] - The five-year home equity loan rate is currently at 7.97%, down from 7.99% four weeks ago and 8.43% one year ago, with a 52-week average of 8.24% and a low of 7.97% [3] - Other home equity loan rates include 10-year at 8.16% and 15-year at 8.10% [3] Influencing Factors - Home equity rates are primarily influenced by Federal Reserve policy and long-term inflation expectations [4] - The Fed's rate cuts in 2025 have led to the lowest HELOC and home equity loan rates in two years, with potential for further reductions in 2026 if projected cuts occur [4] - The Fed's current focus on labor market conditions rather than inflation may increase home equity borrowing appetite, potentially applying downward pressure on rates [5] Comparative Rates - HELOCs and home equity loans are generally less expensive than unsecured credit options, with HELOCs at 8.22% and home equity loans at 7.97%, compared to credit cards at 19.65% and personal loans at 12.20% [6] - Individual offers for HELOCs or home equity loans depend on factors such as creditworthiness, financials, home value, and ownership stake [6]