Home Equity Rate Trends for 2026
Here is the 2026 view on home equity rate trends for 2026 — what moves them and when to lock.
What to know
Entering 2026, home equity rates have eased modestly from their peak but remain elevated, with Prime near 7.5-8%. Future moves hinge on Federal Reserve policy and inflation. Rate-sensitive borrowers may favor a fixed home equity loan or a HELOC fixed-rate lock to guard against increases.
What affects your rate
- Your credit score and combined loan-to-value
- HELOC (variable, Prime + margin) vs home equity loan (fixed)
- Lien position and occupancy (primary vs rental)
- The Prime rate and Fed policy — and lender margins, so compare quotes
Example HELOC cost by rate (on a $100,000 balance)
| Rate | Interest-only / mo | Amortizing (20-yr) / mo |
|---|---|---|
| 7.50% | $625 | $806 |
| 8.00% | $667 | $836 |
| 8.50% | $708 | $868 |
| 9.00% | $750 | $900 |
| 9.50% | $792 | $932 |
| 10.00% | $833 | $965 |
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Frequently Asked Questions
- Home Equity Rate Trends for 2026 — the quick answer?
- Entering 2026, home equity rates have eased modestly from their peak but remain elevated, with Prime near 7.5-8%. Future moves hinge on Federal Reserve policy and inflation. Rate-sensitive borrowers may favor a fixed home equity loan or a HELOC fixed-rate lock to guard against increases.
- Are HELOC rates higher than mortgage rates?
- Usually yes — HELOCs are variable and sit in second lien position, so they price above first-mortgage rates, but you only pay interest on what you draw.