Brian McKay
Brian McKay
Co-Founder & Lead Data Architect- Automated Online Rate Data Aggregation
- Location-Based Rate Tables
- Bank & Credit Union Health Safety Ratings
- Bank & Credit Union Star Ratings
- Finance Calculators
HELOC Rates Rise to 6.811% After Banks Raise the Prime Rate to 7.00%
Banks raised the prime rate a quarter point to 7.00% after the Federal Reserve's September 16 increase. HELOC rates are quoted as the prime rate plus a percentage; the HELOC average rose to 6.811% APR this week and home equity loan rates rose to 6.772%.
The Federal Reserve raised its benchmark rate a quarter point to 3.75% to 4.00% on September 16, and major banks raised the prime rate from 6.75% to 7.00%, most within a day of the announcement. HELOC rates are quoted as the prime rate plus a percentage; the average HELOC rate rose 0.032 points to 6.811% APR this week, and average home equity loan rates rose 0.027 points to 6.772%. The rate on an open HELOC changes when the prime rate changes.
Key takeaways
- HELOC rates rose 0.032 points to 6.811% APR this week, and home equity loan rates rose 0.027 points to 6.772%.
- Major banks raised the prime rate from 6.75% to 7.00% after the Federal Reserve's quarter-point increase on September 16, most within a day of the announcement.
- The rate on an open HELOC changes when the prime rate changes, so borrowers with an open HELOC will most likely see the quarter-point increase in their rate over the next billing cycle or two; on a $50,000 balance, a quarter point adds about $10 a month in interest.
- A $50,000 HELOC balance at this week's 6.811% average runs about $284 a month in interest during the draw period. Home equity loan rates are fixed once signed.
Both home equity averages rose this week
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 rose 0.032 points to 6.811% APR this week, a second straight increase after the 0.030-point rise in our September 16 report. HELOC rates are quoted as the prime rate plus a percentage, and the prime rate is now 7.00% after holding at 6.75% since December.
Home equity loan rates rose 0.027 points to 6.772%, giving back most of the prior report's 0.038-point decline, and the average remains inside the narrow range it has held since early summer.
A fixed lump sum or a variable credit line
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 16, by product (percentage points)
This report's averages, September 16 to September 22. Red bars rose; green bars fell.
Home equity rates this week: September 16 vs. September 22
| Product | September 16 APR | September 22 APR | Weekly Change |
|---|---|---|---|
| HELOCs ▲Variable rate; a credit line you draw as needed | 6.779% | 6.811% | ▲ +0.032 |
| Home Equity Loans ▲Fixed rate; borrowed as one lump sum | 6.745% | 6.772% | ▲ +0.027 |
| 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 16 to September 22, 2026; the September 16 figures were collected before the Federal Reserve's announcement that afternoon, and the September 22 figures after banks raised the prime rate to 7.00%. HELOC rates are variable and tied to the prime rate; home equity loan rates are fixed. Source: MonitorBankRates.com. | |||
Banks raised the prime rate within a day of the Fed's move
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. Major banks raised the prime rate from 6.75% to 7.00%, most within a day of the announcement. The rate on an open HELOC changes when the prime rate changes, so borrowers with an open HELOC will most likely see the quarter-point increase in their rate over the following billing cycle or two; on a $50,000 balance, a quarter point adds about $10 a month in interest. A home equity loan's rate is fixed once signed, so existing home equity loan payments do not change.
Proof of homeowners insurance comes before funding
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 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.
The bottom line on home equity rates
HELOCs average 6.811% and home equity loans 6.772% in the first report since banks raised the prime rate to 7.00%. Borrowers comparing local offers can line up Pennsylvania home equity loan rates against these national averages. These figures average more than a thousand lenders, 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 September 22, 2026, these averages were calculated from 5,298 individual rates verified across both products; the latest collection ran September 21, 2026. The table below shows the institutions and rates behind each product's average.
| Product | Institutions | Rates Verified |
|---|---|---|
| HELOCs | 1,139 | 2,261 |
| Home Equity Loans | 823 | 3,037 |
| Total | 5,298 |
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.
