U.S. Home Equity Loan Rates Rise on June 5, 2026, as Asking Prices Fall Steeply

Average rates on home equity lines of credit climbed on June 5, 2026, while asking prices for U.S. homes posted their largest annual decline since 2017. The average HELOC rate reached 7.25% and the fixed-rate home equity loan averaged 7.86%, according to Curinos and Realtor.com data. The move higher coincides with a 2.4% year-over-year drop in median asking prices in May, the seventh straight monthly decline. The prime rate, a benchmark for variable-rate credit lines, held at 6.75%. Lenders add margins based on credit profiles; quoted rates assume a minimum 780 credit score and a combined loan-to-value ratio below 70%. Second-mortgage rates fell through much of 2025 and are expected to remain steady in 2026, favoring homeowners seeking cash for renovations. However, variable-rate HELOCs will adjust over time, raising payments during the 20-year repayment period that follows the initial draw phase.