On January 17, 2026, home equity line of credit (HELOC) and home equity loan rates declined slightly, bringing the average benchmark rate closer to 7%. The movement reflects broader trends in mortgage financing and consumer borrowing costs.
- HELOC average rate declined to 6.92% on January 17, 2026, from 6.97% the prior week
- 30-year fixed home equity loan rate fell to 6.85%, down from 6.90%
- Rates now within 8 basis points of the 7% threshold
- A $100,000 HELOC at 6.92% results in $457.20 monthly interest, down $5.55 weekly
- MORT index rose 0.4% on the day, SPY gained 0.1%
- Major lenders including Wells Fargo and Chase have adjusted rate sheets
Home equity loan and HELOC rates dipped marginally on Saturday, January 17, 2026, with the national average for a 90% loan-to-value HELOC falling to 6.92%, down from 6.97% the prior week. Similarly, the average rate for a 30-year fixed home equity loan decreased to 6.85%, from 6.90% one week earlier. These small yet notable declines bring both products within striking distance of the 7% threshold, a psychological and financial benchmark for mortgage and consumer credit markets. The movement follows a period of rate stabilization after a 2025 surge in borrowing costs driven by Federal Reserve policy adjustments. With inflation under control and core PCE inflation holding at 2.8%, the Federal Reserve has paused rate hikes, creating a more favorable environment for secured lending. This has allowed lenders to slightly reduce pricing on home equity products to remain competitive. For consumers, the 0.05% reduction in HELOC rates could translate to meaningful savings on borrowing costs. For example, a $100,000 HELOC at 6.92% carries a monthly interest payment of $457.20, compared to $462.75 at 6.97%, a weekly savings of $5.55. With nearly 25 million U.S. households now holding home equity loans or HELOCs, even minor rate swings can influence refinancing and home improvement spending. The shift also impacts financial markets. The MORT index, which tracks mortgage-backed securities, rose 0.4% on the day, while SPY, the S&P 500 ETF, saw a modest 0.1% gain, reflecting investor confidence in stable credit conditions. Lenders such as Wells Fargo, Chase, and U.S. Bank have begun adjusting their rate sheets, with some offering promotional HELOC rates as low as 6.6% for qualified borrowers.