HELOC and home equity loan rates hit 2026 lows on August 10
The average adjustable rate for Home Equity Lines of Credit has fallen to 7.16 per cent, while fixed-rate home equity loans stand at 7.35 per cent, reflecting a 19-basis-point spread for high-credit borrowers.
On Monday, August 10, 2026, the average adjustable rate for Home Equity Lines of Credit (HELOCs) fell to 7.16 per cent, marking a new low for the year. According to real estate data analytics company Curinos, the national average rate for fixed-rate home equity loans stood at 7.35 per cent, a figure slightly above its 2026 low of 7.31 per cent recorded in late June.
Data from Curinos indicates a 19-basis-point differential between the two products on this date. These specific rates apply to applicants with a minimum credit score of 780 and a combined loan-to-value ratio of less than 70 per cent. The figures serve as a benchmark for borrowers with strong credit profiles, though individual rates can vary significantly based on creditworthiness and lender policies.
HELOCs are typically variable-rate products tied to the prime rate, which is the baseline rate banks charge their most creditworthy customers. When the prime rate moves, the interest rate on a HELOC generally follows suit. Lenders assess the risk any borrower presents and add a margin to protect themselves, with riskier borrowers facing larger margins.
Home equity loans are typically fixed-rate products, meaning the interest rate remains the same for the entire term. While fixed-rate HELOCs exist, they are much less common. Both loan types are loosely influenced by the Federal Reserve's federal funds rate and broader economic conditions, with lenders incorporating a margin into the rate based on factors such as credit score, debt-to-income ratio, and loan-to-value ratio.
For homeowners with low primary mortgage rates and significant equity, these rates represent the lowest levels in years. Borrowers can access cash for home improvements or other expenses without refinancing their primary mortgage. However, borrowers should note that HELOCs essentially become long-term loans during the repayment period, and rates can fluctuate.
General requirements for these loans typically include a FICO credit score of 680 or higher, proof of income, an appraisal, at least 15 per cent to 20 per cent equity, and a debt-to-income ratio of 43 per cent or less. Lenders may also charge origination fees and other closing costs, so shoppers are advised to compare multiple lenders to find the lowest interest rate and fewest fees.
