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Brian is the Co-Founder of MonitorBankRates.com. For over 18 years, he has utilized his background in enterprise infrastructure to engineer proprietary systems that track rates from over 8,000 financial institutions.

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| September 1, 2026 | 6 min read

HELOC Rates Rise a Third Straight Week; Home Equity Loan Rates Hold Steady

HELOC rates rose for a third straight week as lenders increased rates on new home equity lines of credit, pushing that average to 6.811% APR. Home equity loan rates held steady at 6.751%.

Lenders increased rates on new home equity lines of credit again this week, and average HELOC rates rose 0.056 points to 6.811% APR, a third straight gain. Average home equity loan rates held steady at 6.751%. A HELOC now averages 0.060 points more than a fixed home equity loan, up from 0.005 last week. The prime rate, which HELOC pricing starts from, has held at 6.75% since December, so the increases come from margins lenders add on top of it.

HELOC rates rise again; fixed home equity rates haven't moved

Home equity loan and HELOC rates, national average APR since early April

Average APRs from MonitorBankRates.com's nightly collection, the same series this report's figures come from, updated daily.

HELOC rates have increased in each of the last three reports, from 6.727% on August 18 to 6.755% on August 25 and 6.811% in this report. Home equity loan rates haven't moved over that same stretch, holding between 6.750% and 6.751%. Borrowers comparing offers now see HELOCs averaging 0.060 points more than fixed home equity loans; a week ago those averages were 0.005 apart, and in mid-July fixed home equity loans ran about 0.14 points higher.

The increases came from lenders, not from the Federal Reserve. A HELOC is priced as the prime rate plus a margin each lender chooses, and the prime rate has held at 6.75% since December, so higher margins on new offers account for the entire climb. Anyone with an open HELOC pays the prime rate plus the margin written into that agreement; lender repricing changes what banks quote new applicants, not the rate on an existing line.

A fixed home equity loan now averages less than a HELOC

For years, borrowers who wanted a payment that never changes accepted a higher rate to get it. Not right now. A fixed home equity loan averages 6.751% while a HELOC averages 6.811%, so a locked rate currently comes with the lower number too. Real differences between a home equity loan or a HELOC remain: with a home equity loan, borrowers receive one lump sum and make a level payment; with a HELOC, borrowers draw money as needed and pay a rate that moves whenever the prime rate moves. But borrowers with a one-time, known expense are being offered certainty at no premium, which is not how this market usually works.

Change since August 25, by product (percentage points)

This report's averages, August 25 to September 1. Red bars rose; green bars fell.

Home equity rates this week: August 25 vs. September 1

A September rate increase would reach HELOC borrowers first

HELOC borrowers would feel a September Federal Reserve rate increase directly. After Fed Chairman Kevin Warsh's Jackson Hole remarks on Friday, futures markets put odds of a quarter-point increase at that meeting near 60%, up from about 40%. If the Fed raises its benchmark from 3.50% to 3.75%, prime goes to 7.00%, every open credit line follows within a billing cycle or two, and new offers priced at today's margins would start above 7%. A homeowner with a fixed home equity loan watches all of that from the sidelines; a loan closed at 6.751% keeps paying 6.751%. Lenders adding margin to new lines two weeks before the decision may simply be pricing that possibility in early.

Factor homeowners insurance into the borrowing costs

Any lender approving a HELOC or home equity loan requires homeowners insurance on the property for as long as money is owed, so an insurance premium is part of the monthly cost alongside any rate on this page. Premiums vary by state far more than home equity rates do; our MBR Home Insurance Burden Index ranks all 50 states by how heavily insurance weighs on homeowners, and homeowners in hurricane-exposed markets can start with our Florida homeowners insurance guide. Borrowers financing a roof or storm repairs should get an updated insurance quote in the same sitting as the loan.

Running the numbers on $50,000

A $50,000 balance at this week's average HELOC rate runs about $284 a month in interest during the draw period; a 10-year home equity loan for the same amount at the average fixed rate runs about $574 a month with principal included. Homeowners weighing a bigger restructuring can run a cash-out option against these numbers with our refinance calculator, and borrowers comparing local offers can line up Texas home equity loan rates against these national averages. Whatever the product, a quote locked before September 16 is a quote that can't be moved by whatever the Fed decides.

The bottom line on home equity borrowing

Lenders raised HELOC rates again this week and left home equity loan rates unchanged, so a HELOC now averages 0.060 points more than a fixed home equity loan two weeks before a Fed decision that could push variable rates higher still. Borrowers who need flexibility still have reasons to choose a HELOC; borrowers who need a fixed amount get the lower rate and the certainty at once. These figures average more than a thousand lenders, and individual quotes vary widely; one more quote from your own bank or credit union matters more than anything in this report.