Average HELOC Rate Hits 7.09% in September 2026

The average adjustable rate for a home equity line of credit is 7.09%. This figure represents a new low for 2026. The national average for a fixed-rate home equity loan is 7.42%. This rate is higher than the 7.31% recorded in late June. These figures apply to borrowers with a minimum credit score of 780.

Lenders tie most HELOC rates to the prime rate. The prime rate is the baseline interest banks charge their most creditworthy customers. Lenders add a margin to this base rate to cover their risk. Borrowers with lower credit scores or higher debt-to-income ratios face larger margins. The Federal Reserve’s federal funds rate also influences these costs.

Fixed Rate Loans Show Different Trend

Home equity loans typically offer fixed interest rates. This means the borrower pays the same rate for the entire term. Fixed-rate HELOCs exist but are less common. Fixed-rate home equity loans are rising as market conditions shift. The 7.42% average reflects this upward movement.

Qualification requirements are strict for both products. Borrowers generally need a FICO score of 680 or higher. Applicants must show proof of sufficient monthly income. A home appraisal is required to determine market value. Borrowers must hold at least 15% to 20% equity in the property. The debt-to-income ratio must not exceed 43%.

Market Data Source and Context

The data comes from Curinos, a real estate data analytics company. The figures cited by GN auto markets/bonds: interest rates reflect national averages. Rates vary significantly between individual lenders. Offers can range from nearly 6% to as much as 18%. Shop multiple lenders to find the best terms.

Borrowers should ask about all potential fees. These include origination fees and closing costs. Annual charges and early closure fees are also common. Understanding these costs is critical for total expense calculation. The current low HELOC rates present a specific window for borrowing.