HELOC and Home Equity Loan Rates Remain Closely Aligned on August 3, 2026
On Monday, August 3, 2026, the difference between home equity loan (HEL) rates and HELOC rates is just two basis points. According to Curinos, a real estate data analytics firm, HELs have an average fixed rate of 7.36%, while HELOCs carry an adjustable rate averaging 7.23%. Both figures are based on borrowers with strong credit profiles (minimum FICO score of 780) and low loan-to-value ratios. HELOC rates remain variable, typically tied to the prime rate, meaning they can fluctuate over time depending on broader economic conditions and Federal Reserve policy. In contrast, home equity loans usually offer fixed interest rates for the duration of the term. The choice between a HELOC or HEL is influenced by how borrowers plan to use their funds rather than just comparing current rates. Lenders consider factors such as credit score, debt-to-income ratio (DTI), and loan-to-value (LTV) when determining risk margins added to base interest rates. Borrowers are advised to compare multiple lenders for the best terms and lowest fees.
Topics: HELOC home equity loan interest rates