How low have HELOC interest rates dropped over the past year?

If you’re looking to borrow money, the interest rate you need to repay it back with is always a top consideration. Unfortunately, in recent years, cost-effective borrowing options have been rare. With interest rates on products like home equity loans, personal loans and credit cards all recently in the double digits (not to mention mortgages, which at one point were near their highest level since 2000), borrowers had very few affordable options to choose from.

Against this backdrop, a home equity line of credit (HELOC), however, has been one of the better ways to borrow. Not only does it leverage a robust source (with the average home equity amount comfortably over $300,000 according to a report released earlier this year), but it does so with an average rate significantly lower than all of the aforementioned alternatives. 

And that rate is consistently declining, too.

Thanks to the variable-rate nature of the product, which sees rates change monthly based on market conditions, a HELOC isn’t just one of the cheaper ways to borrow equity now, it’s also one of the cheaper ways to borrow money, period.

To better appreciate the affordability and timeliness of this unique product, then, it helps to understand the recent trajectory HELOC rates have experienced. And it’s a positive one for both existing borrowers and prospective ones. So, how low have HELOC interest rates actually dropped over the past year? That’s what we’ll examine below.

Start by seeing how low your current HELOC rate offers are here.

How low have HELOC interest rates dropped over the past year?

While interest rates have cooled over the past year, thanks in large part to the Federal Reserve’s interest rate reductions, the impact has been arguably felt most powerfully in the HELOC borrowing space. This is great news for existing borrowers, who see their rate adjust monthly based on market conditions without having to refinance as they would with alternative products. 

But the recent rate declines could also encourage potential borrowers to act, knowing that the product here is well-positioned to become more affordable over time. So, how low have HELOC interest rates dropped over the past year? Here are the average rates on a $30,000 HELOC, according to Bankrate, over the past 13 months:

• September 2024: 9.99%
• October 2024: 8.94%
• November 2024: 8.70%
• December 2024: 8.55%
• January 2025: 8.27%
• February 2025: 8.28%
• March 2025: 8.06%:
• April 2025: 7.90%
• May 2025: 7.99%
• June 2025: 8.27%
• July 2025: 8.27%
• August 2025: 8.13%
• September 2025: 8.90%
• October 2025: 7.89%

In short: HELOC rates, minus a few temporary increases, have been on a long, steady decline for much of the past year. And, as of late October 2025, HELOC rates are more than two full percentage points lower than they were at the start of September 2024. If you’re a homeowner with a significant amount of equity to utilize and a good-to-excellent credit score, though, you may be able to find a rate even lower than that 7.89% now. Take the time, then, to shop around, comparing rates and lenders (and remember that you don’t have to use the same bank you have your mortgage with if you don’t want to).

Shop for low-rate HELOCs online here.

The bottom line

Today’s low HELOC interest rates aren’t an anomaly. Instead, they’re a reflection of an increasingly cooling interest rate climate that homeowners in need of extra financing would be smart to take advantage of. Just be sure to calculate your repayment costs against a variety of rates, both higher and lower than what’s currently available, to more accurately ensure long-term affordability. With your home as collateral in these exchanges, it’s critical to get the math right before formally submitting an application.