Brian McKay
Brian McKay
Co-Founder & Lead Data Architect- Automated Online Rate Data Aggregation
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Average HELOC and Home Equity Loan Rates Rise to 7.084% and 6.872%
The average HELOC rate rose 0.263 points to 7.084% APR, a fourth straight increase, and the average home equity loan rate rose to 6.872%. The prime rate is 7.00% after the Federal Reserve's September 16 increase, and HELOC rates are quoted as the prime rate plus a percentage.
The average HELOC rate rose 0.263 points to 7.084% APR this week, a fourth straight increase after 6.779% on September 16, 6.811% on September 22 and 6.821% on September 29. The average home equity loan rate rose 0.086 points to 6.872%, a third straight increase. The prime rate is 7.00%, up from 6.75% after the Federal Reserve's September 16 increase. HELOC rates are quoted as the prime rate plus a percentage, and the rate on an open HELOC changes when the prime rate changes.
Key takeaways
- The average HELOC rate rose 0.263 points to 7.084% APR, a fourth straight increase, and the average home equity loan rate rose 0.086 points to 6.872%, a third straight increase.
- The prime rate is 7.00%, up from 6.75% after the Federal Reserve's quarter-point increase on September 16.
- The rate on an open HELOC changes when the prime rate changes; on a $50,000 balance, a quarter point adds about $10.42 a month in interest.
- A $50,000 HELOC balance at this week's 7.084% average runs about $295.17 a month in interest during the draw period, up from $284.21 at last week's 6.821%. Home equity loan rates are fixed once signed.
The average HELOC rate rose 0.263 points to 7.084%
Home equity loan and HELOC rates, national average APR since April 13
Average APRs from MonitorBankRates.com's nightly collection, the same series this report's figures come from, updated daily.
The average HELOC rate was 6.779% on September 16, 6.811% on September 22, 6.821% on September 29 and is 7.084% this week, 0.084 points above the 7.00% prime rate.
The average home equity loan rate rose 0.086 points to 6.872%, after 6.745% on September 16, 6.772% on September 22 and 6.786% on September 29.
Home equity loan vs. HELOC: fixed rate and variable rate
A home equity loan is borrowed as one lump sum at a fixed rate, with the same payment every month until it is paid off. A HELOC is drawn as needed, and its rate changes when the prime rate changes. Our guide to the differences between a home equity loan and a HELOC covers both in detail.
Change since September 29, by product (percentage points)
This report's averages, September 29 to October 6. Red bars rose; green bars fell.
Home equity rates this week: September 29 vs. October 6
| Product | September 29 APR | October 6 APR | Weekly Change |
|---|---|---|---|
| HELOCs ▲Variable rate; a credit line you draw as needed | 6.821% | 7.084% | ▲ +0.263 |
| Home Equity Loans ▲Fixed rate; borrowed as one lump sum | 6.786% | 6.872% | ▲ +0.086 |
| More on borrowing against your home: home equity loan vs HELOC · compare home equity rates | |||
| All APRs are national averages of what real licensed institutions are actually offering to borrowers, not promotional teaser rates or rate aggregator estimates. This comparison runs September 29 to October 6, 2026. HELOC rates are variable and tied to the prime rate; home equity loan rates are fixed. Source: MonitorBankRates.com. | |||
The prime rate is 7.00% and the average HELOC rate is 7.084%
The Federal Reserve raised its benchmark rate a quarter point to 3.75% to 4.00% on Wednesday, September 16, its first increase since 2023, by a 12 to 0 vote. The prime rate rose from 6.75% to 7.00%. The rate on an open HELOC changes when the prime rate changes; on a $50,000 balance, a quarter point adds about $10.42 a month in interest. A home equity loan's rate is fixed once signed, so existing home equity loan payments do not change.
Homeowners insurance and the monthly cost of borrowing
A lender approving a HELOC or home equity loan requires proof of homeowners insurance on the property for as long as money is owed, and the insurance premium is part of the monthly cost alongside the interest. Our MBR Home Insurance Burden Index ranks all 50 states by how heavily those premiums weigh on homeowners.
HELOC and home equity loan averages on October 6
HELOCs average 7.084% and home equity loans 6.872%. Borrowers comparing local offers can line up Texas home equity loan rates against these national averages. These figures average more than 800 lenders for each product, and the APR any borrower is quoted depends on credit profile, equity position, loan size, and lender.
Data Coverage & Methodology
All APRs in this report are calculated from rates collected directly from institution websites by MonitorBankRates.com's proprietary systems, tracking what real licensed institutions are actually offering to borrowers, not promotional teaser rates or rate aggregator estimates.
As of October 6, 2026, these averages were calculated from 4,837 individual rates verified across both products; the latest collection ran October 5, 2026. The table below shows the institutions and rates behind each product's average.
| Product | Institutions | Rates Verified |
|---|---|---|
| HELOCs | 1,061 | 1,923 |
| Home Equity Loans | 806 | 2,914 |
| Total | 4,837 |
Product counts overlap because many institutions offer both a home equity loan and a HELOC. Product rows reflect the institutions and rates that fed each product's most recent verified nightly average.
This report is for general information and is not financial advice. The APR any borrower receives depends on credit profile, equity position, loan size, and lender; confirm current offers with lenders before making decisions.
