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 6.821% and 6.786%
The average HELOC rate rose to 6.821% APR, a third straight increase, and the average home equity loan rate rose to 6.786%. 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 0.010 points to 6.821% APR this week, a third straight increase after 6.779% on September 16 and 6.811% on September 22. The average home equity loan rate rose 0.014 points to 6.786%, a second 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.
In a MonitorBankRates reader survey taken September 16 to 23, 36 of the 69 readers asked on our lending pages (52%) said they would hold off on borrowing; with a sample that size, the margin of error is 11.8 points.
Key takeaways
- The average HELOC rate rose 0.010 points to 6.821% APR, a third straight increase, and the average home equity loan rate rose 0.014 points to 6.786%, a second 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 6.821% average runs about $284.21 a month in interest during the draw period. Home equity loan rates are fixed once signed.
- 36 of the 69 readers asked on our lending pages in the September 16 to 23 survey (52%) said they would hold off on borrowing.
Average HELOC and home equity loan rates both rose
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.
The average HELOC rate rose 0.010 points to 6.821% APR this week. It was 6.779% on September 16, 6.811% on September 22 and 6.821% on September 29. HELOC rates are quoted as the prime rate plus a percentage, and the prime rate is 7.00%, up from 6.75%.
The average home equity loan rate rose 0.014 points to 6.786%, after 6.745% on September 16 and 6.772% on September 22.
How a home equity loan and a HELOC differ
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 22, by product (percentage points)
This report's averages, September 22 to September 29. Red bars rose; green bars fell.
Home equity rates this week: September 22 vs. September 29
| Product | September 22 APR | September 29 APR | Weekly Change |
|---|---|---|---|
| HELOCs ▲Variable rate; a credit line you draw as needed | 6.811% | 6.821% | ▲ +0.010 |
| Home Equity Loans ▲Fixed rate; borrowed as one lump sum | 6.772% | 6.786% | ▲ +0.014 |
| 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 22 to September 29, 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% after the Fed's increase
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 is part of the monthly cost
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 September 29
HELOCs average 6.821% and home equity loans 6.786%. Borrowers comparing local offers can line up Georgia 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 29, 2026, these averages were calculated from 5,112 individual rates verified across both products; the latest collection ran September 24, 2026. The table below shows the institutions and rates behind each product's average.
| Product | Institutions | Rates Verified |
|---|---|---|
| HELOCs | 1,110 | 2,152 |
| Home Equity Loans | 812 | 2,960 |
| Total | 5,112 |
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.
