HELOC Rates Average 7.53% in September 2026, but Fed Hikes Cloud 2027 Outlook

The average APR on home equity lines of credit (HELOCs) dropped to 7.53% in September 2026, down from approximately 9% in 2024, according to research across 15 banks and credit unions compiled by TheStreet. Across surveyed lenders, available APRs currently span a wide range, from 5.50% to 18.00%.
U.S. homeowners hold an average of $310,000 in home equity as of September 2026, according to Cotality data. While the multi-year pullback in borrowing costs offers favorable entry terms, prospective borrowers face renewed upward rate pressure heading into 2027.
The Federal Reserve implemented a 25-basis-point interest rate increase in September following hotter-than-expected inflation data, with analysts forecasting an additional hike before year-end. Because HELOCs typically carry variable interest rates anchored to the Prime Rate (currently at 7.00%), any further monetary tightening will directly elevate borrowing costs.