Home equity rates remained stable this week, with no significant changes reported. According to Bankrate’s national survey of lenders, the average rate for a $30,000 home equity line of credit (HELOC) stood at 8.27 percent, while the average rate for a $30,000 home equity loan remained at 8.26 percent. Since the start of June, HELOCs and home equity loan rates have been closely aligned, a trend not seen since 2023. Tai Christian, co-founder and president of Arrive Home, a Utah-based organization facilitating national affordable housing programs, commented on the current parity in rates, noting that the Federal Reserve’s upcoming meeting at the end of the month will play a key role in determining whether this balance will continue. Both HELOCs and home equity loans are currently more favorable options compared to alternatives like credit cards, as highlighted by the interest rate comparisons shown below.
**Current Rates:**
– HELOC: 8.27%
– 5-year home equity loan: 8.26%
– 10-year home equity loan: 8.42%
– 15-year home equity loan: 8.35%
Factors influencing home equity rates today include lender competition for new customers and the actions of the Federal Reserve, particularly impacting variable-rate products like HELOCs. While rates have decreased from their early 2024 peaks, Bankrate’s Chief Financial Analyst Greg McBride predicts further declines in 2025, particularly for HELOCs. It is important to note that home equity rates are generally more affordable than credit card or personal loan rates, given that they leverage the home as collateral.
Real estate continues to be a popular long-term investment choice for Americans, with outstanding total HELOC balances reaching $381.3 billion as of March 2025, a 9.7% increase from the previous year. When considering a home equity loan or line of credit, factors such as creditworthiness, home value, and lender restrictions on total home-based debt should be taken into account. While current rates are relatively high compared to those from a few years ago, they still offer a more favorable borrowing option compared to higher-cost debt alternatives.
According to the Joint Center for Housing Studies of Harvard University, it is estimated that by the fourth quarter of 2024, 1.2 million homeowners with mortgages are facing negative equity in their homes, where the outstanding loan balance exceeds the value of their homes. The Bankrate.com national survey of large lenders is conducted weekly to gather rate information from the 10 largest banks and thrifts in 10 major U.S. markets. This survey, which has been conducted for over 30 years, provides an accurate national comparison of rates and yields on banking deposits, loans, and mortgages.
