Image: Getty Images; Diagram: Bank Rate
Home equity rates have increased slightly over the past week. The $30,000 home equity line rose 1 basis point to 7.32%, according to a national survey of financial institutions conducted by Bankrate. Meanwhile, five-year, $30,000 home equity loans rose 2 basis points to 7.92%.
Despite rising this week, housing interest rates remain near three-year lows. Joshua Smith, head of Metro Mortgage at People’s National Bank, said HELOCs can be an attractive option for homeowners with low mortgage rates, especially those considering debt consolidation.
“Because people are starting to max out their credit cards,” he says. “They’re trying to get away with paying 30% interest on credit cards and getting nothing.”
| the current | 4 weeks ago | 1 year ago | 52 week average | 52 week low | |
| HELOC | 7.32% | 7.44% | 8.29% | 7.98% | 7.31% |
| 5 year home equity loan | 7.92% | 7.98% | 8.41% | 8.19% | 7.90% |
| 10 year home equity loan | 8.09% | 8.16% | 8.55% | 8.35% | 8.08% |
| 15 year home equity loan | 8.09% | 8.11% | 8.50% | 8.28% | 8.07% |
| Note: Home equity rates in this study assume a line or loan amount of $30,000. | |||||
What is driving home interest rates up today?
Home equity rates are determined primarily by two factors: Federal Reserve policy and long-term inflation expectations. The Fed kept interest rates on hold at its January meeting as it continued to monitor inflation and the job market. Looking ahead to the rest of this year, Bankrate senior industry analyst Ted Rothman expects the Fed to cut rates by three quarter points in 2026.
“Inflation continues to ease, albeit slowly, and the job market appears to be stabilizing after rising unemployment,” he said. “Right now, the risks appear to be fairly balanced, and it will likely take some time for the Fed to decide on its next action. A new Fed chair will also be installed soon.”
Comparison of current home equity interest rates and interest rates on other types of credit
Because HELOCs and home equity loans use your home as collateral, their interest rates tend to be much cheaper than the interest rates charged on unsecured credit cards or personal loans, and are closer to current mortgage rates.
| Type of credit | average rate |
| HELOC | 7.32% |
| home equity loan | 7.92% |
| credit card | 19.60% |
| personal loan | 12.16% |
| Source: Bankrate National Lender Survey, February 11 | |
Average interest rates are good to know, but the individual offer you receive on your particular HELOC or new home equity loan will reflect additional factors such as your creditworthiness and financial situation. Then there is the value of the home and the size of the ownership. Lenders typically limit all home loans (including mortgages) to a maximum of 80% to 85% of the home’s value.
Remember: Even if you can secure a favorable interest rate from a lender, home equity products are still relatively high-cost debt.
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Fixed-rate home equity loans offer lump sum payments and a predictable repayment schedule.
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