Home Equity and HELOC Rates - July 2026 Average Rates and Trends
Independent rate roundup with current survey averages, credit-score impact analysis, and rate forecast. Unlike bank pages that show you their rates, this page shows you the market.
Current Rate Summary (July 2026)
Average HELOC Rate
7.43%
Variable
Average HE Loan Rate
8.08%
Fixed
Prime Rate
6.75%
Fed funds + 3%
HELOC Margin Range
Prime to +3.5%
Above prime
Source: Bankrate national survey averages, 8 July 2026 (HELOC reflects a $30,000 line, 700 FICO, 80% CLTV). Updated monthly.
Where Rates Stand (July 2026)
Bankrate's national survey put the average HELOC rate at 7.43% and the average home equity loan rate at 8.08% as of 8 July 2026. The HELOC figure reflects a $30,000 line for a borrower with a 700 credit score at 80% combined loan-to-value.
HELOCs move directly with the prime rate (6.75%), which has held steady since the Federal Reserve paused its cutting cycle with the federal funds target at 3.50% to 3.75% (held for a fourth straight meeting on 17 June 2026). Fixed home equity loan rates track longer-term Treasury yields and currently sit roughly 0.65 percentage points above the variable HELOC average.
Rates are below their 2023-2024 peak but have been broadly flat through the first half of 2026, and the Fed's June projections point to rates holding rather than falling in the near term.
How Rates Are Set
HELOC Rates (Variable)
HELOC rates are based on the prime rate plus or minus a margin set by the lender. The prime rate currently sits at 6.75% and moves in lockstep with the Federal Reserve's federal funds target. When the Fed cuts rates, HELOC rates fall. When the Fed raises rates, HELOCs get more expensive.
HE Loan Rates (Fixed)
Home equity loan rates are based on the 10-year Treasury yield plus a risk premium. They do not move as directly with the Fed as HELOC rates. Fixed rates are typically slightly higher than variable because the lender absorbs the risk of future rate changes.
Rate Tiers by Credit Score
Your credit score is the single biggest factor in the rate you pay. These are approximate HELOC rate ranges based on the current prime rate of 6.75%.
| Credit Score | Margin | Typical Rate | Status |
|---|---|---|---|
| 780+ | Prime to Prime + 0.25% | 6.75% - 7.00% | Excellent |
| 720-779 | Prime + 0.25% to Prime + 0.75% | 7.00% - 7.50% | Very Good |
| 680-719 | Prime + 0.75% to Prime + 2% | 7.50% - 8.75% | Good |
| 640-679 | Prime + 2% to Prime + 3.25% | 8.75% - 10.00% | Fair |
| 620-639 | Prime + 3.25% to Prime + 3.75% | 10.00% - 10.50% | Minimum |
Rate Forecast: What to Expect in 2026
HELOC rates have eased from their 2023-2024 peak as the Fed cut the federal funds target to 3.50% to 3.75%, where it has held through the first half of 2026. That keeps the prime rate at 6.75%.
At its 17 June 2026 meeting the Fed held rates for the fourth straight time and raised its projections: the median policymaker now sees the federal funds rate ending 2026 near 3.8%, with more participants expecting a hike than a cut this year. On that guidance the prime rate stays at 6.75% for now, and the next move is as likely to be up as down.
Bottom line: If you are considering tapping your equity, fixed home equity loan rates near 8% remain well above the prime-linked HELOC average. Waiting for Fed cuts is a gamble the central bank's own forecasts no longer support, so there is little rate case for delaying on that basis alone.
Frequently Asked Questions
What is the average HELOC rate right now?
As of July 2026, the average HELOC rate is approximately 7.43% (variable), per Bankrate's national survey. It is built from the prime rate (6.75%) plus a margin that depends on the lender and your credit profile. Rates range from near prime for excellent credit to 10%+ for lower scores.
What is the average home equity loan rate?
The average home equity loan rate is approximately 8.08% (fixed) as of July 2026, per Bankrate's national survey. Home equity loan rates run roughly 0.5 to 0.75 percentage points above HELOC rates because the fixed rate shifts the risk of future rate moves from the borrower to the lender.
How are HELOC rates determined?
HELOC rates are based on the prime rate (currently 6.75%) plus or minus a margin set by the lender. Your margin depends on your credit score, LTV ratio, loan amount, and the lender's current pricing. The Fed's rate decisions directly affect HELOC rates since the prime rate moves in lockstep with the federal funds target.
Will HELOC rates go down in 2026?
Probably not soon. At its 17 June 2026 meeting the Fed held the federal funds target at 3.50% to 3.75% for the fourth straight time, keeping the prime rate at 6.75%. Its updated projections turned hawkish: the median policymaker now sees the rate ending 2026 near 3.8%, and most participants expect rates to hold or rise rather than fall this year. A near-term HELOC rate cut is unlikely on current guidance.
Does my credit score affect my HELOC rate?
Significantly. A borrower with 780+ credit might pay close to prime (around 6.9-7.0%), while a borrower with 640 credit might pay prime plus 3.5% (around 10.25%). A gap of roughly 3.5 percentage points on a $75,000 HELOC means about $220/month more in interest.
How do home equity loan rates compare to mortgage rates?
Home equity loan rates are typically 1-2% higher than first mortgage rates because they are subordinate liens. If you default, the first mortgage gets paid first, making the second lien riskier for the lender.
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