Rates on both home equity borrowing products are similar now, but they're unlikely to remain so for much longer.

High summer’s heat may be making home equity rates sleepy. The average rate on a $30,000 home equity line of credit (HELOC) was unchanged at 8.27 percent for the fifth straight week, according to Bankrate’s national survey of lenders. The average rate on the $30,000 home equity loan barely stirred, moving two basis points up to 8.28 percent.

When rates fell to around 6.7% (the lowest level in months) in early July, applications for home loans promptly ticked up, according to the Mortgage Bankers Association. But when the average 30-year fixed rate jumped to around 6.8% last week, mortgage activity plummeted 10%.

If your HELOC application was denied, you still have some options. Here's which next steps experts say to take now.

Both HELOCs and home equity loans have declined substantially from their highs reached at the beginning of 2024, although they have moved off the lows they achieved this year. Bankrate Chief Financial Analyst Greg McBride still forecasts that rates will decline in 2025 — especially those on HELOCs, potentially to their lowest level in three years.

If you’re happy with your mortgage rate but want to tap into your home’s equity, consider how the Federal Reserve’s next meeting could impact what you’ll pay.

If you're thinking about tapping your home's equity, make sure you understand what could happen with rates soon.

10-Year Home Equity Loan Rates (120 Months) With a 10-year term, borrowers can enjoy a balanced monthly payment while still building equity quickly. 10-year home equity loans are ideal for medium ...

Generally, longer-term loans have higher interest rates. According to Ken Flaherty, senior manager of retail lending for financial data firm Curinos, as of the second quarter of 2025, average home equity loan rates ranged from 8.28% to 9.04%, depending on the length of the term.

The average rate on a 10-year HELOC is 7.37%, according to Bankrate.com, while the average rate on a 20-year HELOC is 8.29%. Related: Best Home Equity Loan Lenders What Are Current HELOC Rates?

20-Year Home Equity Loan Rates (240 Months) Offering longer repayment and lower monthly payments, 20-year home equity loans are suitable for larger investments and long-term financial planning.