HELOCs average 8.12% and home equity loans 8.23%, as markets expect a Fed rate cut in September that could push borrowing costs lower.
Despite the small declines, borrowing remains costly compared to earlier years, with most home equity debt still above 8%, limiting affordability for many households.
Home equity balances keep climbing, now at $411 billion after 13 straight quarterly increases, fueled by demand for renovations and debt consolidation among homeowners.
A Fed rate cut could lower savings yields, reduce personal loan costs, trim credit card rates slightly, and influence mortgages through bond markets and inflation.
