HELOC rates hold at 7.21% as Chase re-enters second mortgage market
The national average adjustable rate for home equity lines of credit stood at 7.21% on Wednesday, while fixed home equity loans averaged 7.36%, according to data analytics firm Curinos.
Data analytics company Curinos reported on Wednesday, June 3, 2026, that the national average monthly adjustable rate for home equity lines of credit (HELOCs) was 7.21%. The average fixed rate for home equity loans was recorded at 7.36%. These figures are based on applicants with a minimum credit score of 780 and a maximum combined loan-to-value ratio of 70%. The current prime rate is 6.75%, serving as the benchmark for these second mortgage products.
HELOC rates are typically variable and priced off the prime rate plus a margin, whereas primary mortgage rates are guided by the 10-year Treasury yield. For instance, if a lender added a 0.75% margin to the prime rate, the resulting HELOC rate would be 7.50%. Because every lender employs its own methodology for pricing second mortgage products, comparison shopping remains critical for borrowers seeking optimal terms.
Market dynamics are shifting as non-bank lenders reshape the HELOC landscape, potentially introducing new rules such as minimum draw requirements. Amid this evolving environment, Chase Home Lending is re-introducing its home equity line of credit product to the market, although specific terms and eligibility criteria for the offering were not detailed in the source data.
Competitive offers continue to emerge, with FourLeaf Credit Union advertising a HELOC introductory rate of 5.99% for 12 months on lines up to $500,000. This introductory rate will convert to a variable rate as low as 6.75% thereafter. Borrowers are advised to consider both introductory and long-term variable rates when evaluating such products.
The broader economic context includes a US-China summit in Beijing involving trade, artificial intelligence, and Iran tensions, alongside positive movements in US stock markets. As the summit began on Thursday, the Dow Jones Industrial Average gained 0.8%, the S&P 500 rose 0.3%, and the Nasdaq Composite climbed 0.2%. Nvidia shares also surged more than 2% following US approval for a chip sale.
