Home Equity Rates Hover Near 2026 Lows as Second-Lien Risk Keeps Borrowing Costs Elevated

Average U.S. home equity borrowing rates remained near 2026 lows on May 15, 2026, with HELOCs at 7.21% and home equity loans at 7.36%, according to Curinos. Both products remain about 1 percentage point above 30-year conforming fixed-rate purchase mortgages because they are typically second-lien loans, increasing lender risk. The 2026 low for HELOCs was 7.19% in mid-March, while the current 7.36% home equity loan average matches the year’s low first reached in mid-March. The quoted averages apply to borrowers with credit scores of at least 780 and combined loan-to-value ratios below 70%. HELOC pricing is commonly tied to an index such as the prime rate, currently 6.75%, plus a lender margin. A 0.75-point margin would imply a 7.50% variable rate. Fixed-rate home equity loans often carry different pricing because lenders assume longer-term rate risk. Rates can vary widely, from about 6% to 18%, depending on credit quality, debt levels and collateral.