Home Equity Rates Hit 2026 Highs as Fed Holds Rates for 4th Meeting
Updated
Updated · Bankrate.com · Jun 19
Home Equity Rates Hit 2026 Highs as Fed Holds Rates for 4th Meeting
3 articles · Updated · Bankrate.com · Jun 19
Summary
$30,000 HELOC rates rose 2 basis points to 7.47%, the highest this year, while five-year home equity loans climbed 3 basis points to 8.13% in Bankrate’s lender survey.
Fed policy and inflation expectations are driving the move after the central bank left rates unchanged for a fourth straight meeting and said inflation remains above its 2% target.
Markets were also surprised that nearly half of Fed officials would back a rate hike if inflation persists and that the June statement dropped language hinting at future rate direction.
Even after the increase, home equity borrowing remains cheaper than other consumer debt, with average credit card rates at 19.56% and personal loans at 12.28%.
The rise comes as homeowners still hold substantial equity—up 142% nationwide since 2020—though the share of equity-rich mortgaged homes slipped to 43.3% in Q1 2026.