Experts See 4.2% Inflation Pushing HELOC Rates Higher This Summer
Updated
Updated · CBS New York · Jun 19
Experts See 4.2% Inflation Pushing HELOC Rates Higher This Summer
3 articles · Updated · CBS New York · Jun 19
Summary
A meaningful summer drop in HELOC and home equity loan rates looks unlikely, with experts saying the balance of risk now points to higher borrowing costs.
At 4.2%, U.S. inflation is at its highest level in more than three years, while the Federal Reserve has held rates steady since late 2025, limiting the main path to cheaper HELOCs.
HELOCs track the prime rate, so they may stay relatively flat unless the Fed moves, but economists say persistent inflation, strong employment or a prolonged Iran conflict could still push them up.
home equity loans appear less stable because they are longer-term products influenced by more factors, leaving borrowers to weigh current needs such as debt consolidation against the risk of waiting.