HELOC, Home Equity Loan Rates Stay Near 2026 Lows, Narrowing Spread

The average rate on a home equity line of credit (HELOC) settled at 7.21% as of June 2, 2026, down 3 basis points from a month earlier and just 2 basis points above its 52-week low of 7.19% set in mid-March, according to real estate analytics firm Curinos. The average fixed-rate home equity loan dropped 8 basis points to 7.36%, tying its 2026 trough. The tight spread between the two products means the decision often comes down to how the funds are used. A HELOC functions as a revolving credit line, allowing multiple draws and repayments, while a home equity loan delivers a lump sum with fixed payments. With 30-year mortgage rates still above 6%, homeowners sitting on low-rate first mortgages may view second-lien products as a way to access equity without surrendering their existing loans. Shoppers should scrutinize HELOC offers for introductory teaser rates that can reset significantly higher after six to 12 months. Home equity loan rates, being fixed, avoid that risk. The prime rate, to which many HELOCs are tied, currently stands at 6.75%.