What's the HELOC and home equity loan interest rate forecast for summer 2026?

A few factors could affect the cost of home equity borrowing this summer, experts say. Arkira/Getty Images Despite some periods of volatility, rates on home equity loans have been on a slow but steady decline for the past year or so. And while home equity line of credit (HELOC) rates have been a bit less predictable, right now, rates on these lines of credit are substantially lower than they were a year ago. In recent weeks, though, things have taken a turn. Rates on both products have started to rise again, due, in large part, to a lack of rate cuts by the Federal Reserve. The central bank has held its federal funds rate steady since late 2025, with no end to the pause in sight. And, rising inflation is also factoring into this equation. Is that trend going to continue, though? Or could homeowners expect lower home equity loan and HELOC rates in the near future? Here's what pros predict could happen to these rates this summer. Find out how affordable the right home equity borrowing option could be now . What needs to happen for home equity and HELOC rates to fall this summer The ideal outcome is that home equity loan and HELOC rates fall this summer, making it more affordable for homeowners to borrow against their equity to access cash or consolidate debt. For that to happen, though, experts say a lot needs to change. …