HELOC and home equity loan rates rise to 7.16% and 7.35%

On Friday, August 7, 2026, the average interest rate for a home equity line of credit (HELOC) was 7.16% and the average rate for a fixed‑rate home equity loan was 7.35%, according to real‑estate analytics firm Curinos. Both rates are based on borrowers with a minimum FICO score of 780 and a combined loan‑to‑value ratio below 70%. The numbers show a modest rise from the low points of 2026, signalling that rates are moving again.

Lenders have flexibility in pricing HELOCs and home equity loans, but the rates most borrowers see depend on three main factors: credit score, debt‑to‑income ratio, and the loan amount relative to the home’s value. A higher credit score and lower debt give the lender confidence, so the borrower gets a smaller margin added to the base rate. Lenders also look at the loan‑to‑value ratio; a higher ratio means higher risk and a higher margin. The prime rate, the baseline rate banks charge their best customers, is the main external benchmark that feeds into the margin calculation.

HELOCs are typically variable‑rate products. When the prime rate rises or falls, the HELOC rate usually follows suit. Home equity loans are usually fixed‑rate, meaning the borrower pays the same rate for the life of the loan, but the initial rate still reflects the prime rate and the lender’s margin. Both types of loans are loosely influenced by the Federal Reserve’s federal funds rate and broader economic conditions, so a Fed hike can push both HELOC and home equity loan rates higher over time.

Borrowers should shop around and ask about all fees, including origination, annual, and early‑closure charges. Lenders may require a recent appraisal, proof of homeowners insurance, and a debt‑to‑income ratio of 43% or less. Comparing offers from multiple lenders can uncover a better rate or lower total cost, especially when rates are on the move.