Home Equity Rates Hold;
Loans Ease to 6.76%

Home equity rates were quiet in the first week-over-week reading since tracking launched. Fixed-rate home equity loans eased 0.022 points to 6.757% APR, while HELOCs were essentially flat, edging up 0.002 points to 6.622%. Because the fixed loan slipped while the line of credit held, the gap between the two narrowed to 0.135 points. The combined home equity average was steady at 6.722% APR across all 50 states.

📊 Two-segment home equity coverage tracked weekly by MonitorBankRates.com.

NATIONAL: National average home equity rates were quiet in the first week-over-week reading since MonitorBankRates.com launched home equity tracking on May 25, 2026. Fixed-rate home equity loans eased 0.022 points to 6.757% APR, the week’s larger move. HELOCs, home equity lines of credit, were essentially flat, edging up 0.002 points to 6.622% APR and holding their position just below the fixed product. The combined home equity average was steady, slipping 0.003 points to 6.722% APR across 5,758 verified rate quotes.

Home equity loans eased 0.022 points to 6.757% APR across 715 reporting institutions, the larger of the two segment moves. A home equity loan is a fixed-rate, lump-sum second mortgage: the homeowner borrows a set amount against accumulated equity and repays it on a fixed schedule, typically over five to twenty years. Because the loan is secured by the home and disbursed as a single fixed-rate advance, pricing sits well below unsecured consumer credit. Rates within this segment ranged from 1.990% to 18.000% APR, a wide dispersion reflecting differences in loan-to-value tiers, lien position, and borrower credit at the institution level. For most borrowers with solid equity and credit, the realistic competitive range falls between roughly 6% and 9%.

HELOCs were essentially flat, edging up 0.002 points to 6.622% APR across 1,048 reporting institutions. A home equity line of credit is the revolving counterpart to the fixed loan: rather than a lump sum, the homeowner draws against an approved credit line as needed, usually at a variable rate tied to the prime rate. For a fuller explanation of how these lines work and when they make sense, see our guide to what a home equity line of credit is. HELOCs continue to draw the wider reporting pool of the two segments, 1,048 institutions versus 715 for fixed loans, reflecting how widely lines of credit are offered across community banks and credit unions. At 6.622%, the HELOC average now sits 0.135 points below the fixed home equity loan average, a gap that narrowed this week as the fixed loan eased.

Home equity borrowing occupies a distinct position in the consumer credit market: secured by the home like a mortgage, but typically faster to close and used for renovations, debt consolidation, or large one-time expenses. Because the home serves as collateral, home equity rates sit far below unsecured borrowing. This week’s 6.722% combined average runs roughly 0.4 points above the current 30-year fixed mortgage rate (6.342%), the small second-lien premium homeowners pay to borrow against equity rather than refinance a first mortgage, and well below unsecured alternatives such as personal loans, which average near 10.9% APR, and revolving credit card debt, which typically runs 18% to 25%. For homeowners with substantial equity, both home equity products represent some of the lowest-cost borrowing available.

The choice between the two segments comes down to structure. A fixed-rate home equity loan delivers a predictable payment and rate for the life of the loan, valuable when rates are volatile or a borrower wants certainty. A HELOC offers a lower starting rate and the flexibility to draw only what is needed, but carries variable-rate exposure as the prime rate moves. This week’s narrow 0.135-point gap between the two averages, down from 0.159 last week, means the rate trade-off is currently modest; the decision turns more on whether a borrower values payment certainty or draw flexibility. Compare current home equity rates against mortgage rates for the full secured-borrowing picture.