The Fed has been in the headlines lately, as the prospect of a rate cut fades due to prevailing sentiment that the Fed will raise rates later this year. If that happens, rising HELOC rates won’t be far behind. According to the CME FedWatch tool, there is currently a 31% chance that the Fed will raise rates by 25 basis points after its meeting in July. In December, there is a combined consensus of 81.6% that prices will be higher.
Read more: Find out how HELOC and mortgage interest rates work and what you can expect to pay
HELOC and mortgage rates: Friday, June 26, 2026
The standard ELOC level is 7.25%according to real estate appraisal firm Curins. The lowest 2026 HELOC rate was 7.19% in mid-March and again in May. The national average mortgage rate is 7.86%. The 2026 HEL low was 7.36%, seen in both March and May.
Rates are based on applicants with a minimum credit score of 780 and a combined maximum loan-to-value (CLTV) ratio of less than 70%.
Read more: Here are our picks for the best HELOC lenders
How lenders determine HELOC and HEL interest rates
Home equity interest rates work differently than mortgage rates. The second mortgage rates are based on the index rate and the margin. That rate is usually the prime rate, which is usually 6.75%. If the lender adds 0.75% as margin, the HELOC will have a variable rate of 7.50%.
A home loan may have a different margin because it is a fixed interest product.
Lenders have flexibility with the pricing of a secondary loan product, such as a HELOC or home equity loan. Your rate will depend on your credit score, the amount of debt you carry, and the value of your line of credit compared to the value of your home. Shop around several lenders to find your best interest rate offer.
Read more: Learn about how fixed rate HELOCs work
Look for low rate HELOC offers
Today, FourLeaf Credit Union offers a HELOC APR (annual percentage rate) of 5.99% for 12 months on lines up to $500,000. That is the introductory rate that will convert to a variable amount in one year.
When shopping for lenders, be aware of both rates. And as always, compare fees, payment terms, and minimum withdrawals. The draw is the amount of money the lender requires you to take out at the start of your equity.
The best home loan lenders may be easy to find because your fixed rate will last for the duration of the repayment period. That means just one level to focus on. And you get a whole lot of money, so there are few things to consider.
HELOC and mortgage loan rates today: Frequently Asked Questions
What is a good interest rate on a HELOC right now?
Rates vary widely from one lender to the next. You can see rates from 6% to 18%. It depends on your creditworthiness and how diligent you are as a buyer. Currently, the national average for an adjustable rate HELOC is 7.25%, and fixed-rate home loans, of course 7.86%. Those are the prices to meet or beat.
Is it a good idea to get a HELOC or home equity loan right now?
Interest rates are down around 2025. They are expected to remain stable or increase in 2026. So yes, it is a good time to get a second loan. And with a HELOC or HEL, you can use the money taken from your equity for things like home improvements, repairs, and improvements. Anything else.
What is the monthly payment for a $50,000 home equity line of credit?
If you take out the full $50,000 on your home equity line of credit and pay 7.25% interest, for example, your monthly payment over a 10-year draw would be $302. That sounds good, but remember that the rate is often variable, so it changes from time to time, and your payments will increase over the course of a 20-year repayment period. A HELOC essentially becomes a 30-year loan. HELOCs are best if you borrow and repay the balance within a very short period of time.
