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HELOC Rates Dip to 7.12%, Home Equity Loans Average 6.96% as Borrowing Costs Ease

Homeowners hold record levels of tappable equity, making secured credit lines a comparatively low-cost option.

Overview

  • Money reports the average HELOC rate at 7.12% and the average home equity loan rate at 6.96% as of February 19, 2026.
  • HELOCs carry variable rates that can change with market conditions, while home equity loans offer fixed payments unless refinanced.
  • CBS News notes both products currently price well below typical credit cards and personal loans, keeping borrowing costs under 10% for many.
  • Bankrate’s Feb. 18 survey shows multi‑year lows with a 7.31% HELOC average and a 7.89% five‑year $30,000 home equity loan, underscoring that published averages vary by source and terms.
  • Interest may be tax‑deductible for eligible home improvements, but these loans are secured by the property and missed payments can lead to foreclosure, so borrowers should compare offers and assess affordability.