HELOC and home equity loan rates hit 2025 lows

National average HELOC rate is 7.44% and the average home equity loan rate is 7.59% as of Dec. 31, 2025, according to Curinos. The Federal Reserve reported homeowners held about $36 trillion in home equity at the end of the second quarter of 2025.

Rates for home equity lines of credit (HELOCs) and home equity loans are closing out the year at their lowest point of 2025. Monthly payments on these second-mortgage products are becoming somewhat more affordable for many borrowers. Lenders price these products off an index rate plus a margin, so moves in benchmark rates matter. The shift comes as homeowners hold historically large amounts of home equity. What was reported: - The national average HELOC rate was reported as 7.44% on Dec. 31, 2025, and the average home equity loan rate was reported as 7.59%, according to data analytics firm Curinos. - Those averages are based on applicant profiles with a minimum credit score of about 780 and a combined loan-to-value around 70%, as noted in the data report. - The prime rate, a common index for HELOCs, has fallen to 6.75%, which helps explain some of the movement in advertised HELOC pricing. - The Federal Reserve reported roughly $36 trillion in homeowner equity at the end of the second quarter of 2025, a record level. - Lenders may offer introductory HELOC terms that start lower and then convert to a variable rate; some advertised examples showed initial offers under 6% that later adjust higher. Summary: Lower advertised rates are easing monthly payment estimates for HELOCs and home equity loans and are occurring alongside record homeowner equity levels. Future rate changes will depend on benchmark index movements and lender margins; Undetermined at this time. Market movements often unfold over weeks and months, and observers are following developments.