HELOC Rates Hold at 2026 Low; Fed Hike Odds Point to Future Rise

The average rate on a home equity line of credit was 7.21% on May 30, 2026, matching a 2026 low, while fixed-rate home equity loans held at 7.36%, according to Curinos. CME Group’s FedWatch tool shows a growing likelihood of Federal Reserve rate increases, with the probability of a December hike reaching 37.3%, signaling that HELOC costs could rise. HELOC rates are tied to the prime rate, currently 6.75%, plus a margin. The national averages assume a credit score of at least 780 and a combined loan-to-value ratio under 70%. Some lenders offer introductory rates, such as FourLeaf Credit Union’s 5.99% APR for 12 months on lines up to $500,000. For a $50,000 draw at 7.25%, monthly interest during a 10-year draw period would be about $302. Advisors say HELOCs remain attractive for homeowners with low primary mortgage rates who need to tap equity without refinancing.