HELOC and Home Equity Loan Rates Fall as Introductory Offers Expire

With the introduction of new rates in recent weeks, borrowers who have been eyeing a home equity line of credit (HELOC) or home equity loan are now faced with a daunting task: navigating the market to find the best deals. In January 2026, many lenders began offering attractive introductory rates on HELOCs and home equity loans to attract new customers. These low-interest rates were often tied to promotional periods that lasted several months, giving borrowers a brief window of opportunity to secure an affordable loan. However, with those introductory offers now set to expire, the interest rate landscape has shifted significantly. On average, HELOC rates have risen by 0.5-1 percentage point compared to their low-introductory levels, while home equity loans have seen slightly more modest increases, averaging around 0.2-0.5 percentage points. Borrowers seeking a new HELOC or home equity loan are now being forced to shop around to find the best rates. This can be particularly challenging, especially for those who value stability and predictability in their borrowing experience. To give borrowers a better idea of what’s at stake, here are some examples of current market trends:

  • The national average 5-year HELOC rate has risen to 4.75%, up from 3.25% just a few months ago.
  • Home equity loan rates have increased by as much as 1 percentage point in some regions, depending on the lender and borrower profile. While it may seem daunting, not all is lost for borrowers who are looking to tap into their home’s value. With some persistence and research, they can still find competitive offers that suit their needs. To make sense of this evolving landscape, experts recommend that borrowers take a few key steps:
  1. Check online marketplaces: Websites like NerdWallet or Credit Karma allow you to compare rates from multiple lenders and identify the best deals.
  2. Contact multiple lenders: Don’t be afraid to shop around and explore different loan options with various lenders.
  3. Consider working with a mortgage broker: Experts in the field can help match borrowers with the right lenders and negotiate more favorable terms. By taking these steps, borrowers can navigate the current market challenges and find the best HELOC or home equity loan rates for their needs – even if it means putting in some extra time and effort.