Home Equity Rates Tracked;
HELOCs at 6.62%, Loans at 6.78%

MonitorBankRates.com launched weekly home equity rate tracking this week, covering two product segments across more than 1,570 banks and credit unions. National average APRs ran from 6.620% on HELOCs to 6.779% on fixed-rate home equity loans — a narrow 0.159-point spread between the two ways homeowners borrow against equity. Coverage spans all 50 states.

📊 Two-segment home equity coverage launched May 25, 2026 by MonitorBankRates.com.

NATIONAL — MonitorBankRates.com launched weekly tracking of national average home equity loan rates for the week ending May 25, 2026 — covering two product segments collected directly from the public websites of more than 1,570 U.S. banks and credit unions. Fixed-rate home equity loans averaged 6.779% APR. HELOC rates — home equity lines of credit, the revolving alternative — averaged 6.620% APR, slightly below the fixed product. The combined home equity universe averaged 6.725% APR across 5,801 verified rate quotes.

Home equity loans averaged 6.779% APR across 717 reporting institutions. 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 17.500% 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 averaged 6.620% 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. HELOCs drew the wider reporting pool of the two segments — 1,048 institutions versus 717 for fixed loans — reflecting how widely lines of credit are offered across community banks and credit unions. At 6.620%, the HELOC average sits 0.159 points below the fixed home equity loan average, a modest gap that reflects the trade-off borrowers weigh: a HELOC's lower starting rate against the rate certainty of a fixed loan.

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 6.725% combined average runs roughly 0.4 points below the current 30-year fixed mortgage rate (6.361%) at the secured end — 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 0.159-point gap between the two averages 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.