Average HELOC rate 7.21% May 16

Yahoo Finance reported on May 16 that the average rate on a home equity line of credit, or HELOC, was 7.21%, while the average home equity loan rate was 7.36%, citing Curinos data carried in its daily rates coverage. The figures put both products near their lowest levels of 2026, according to data summarized by IndexBox from Curinos. Bankrate’s separate lender survey, updated May 16, showed a national average HELOC rate of 7.26% as of May 6, underscoring that published averages can vary by source and survey date. ### Why are there two different rates for borrowing against home equity? The Consumer Financial Protection Bureau says a HELOC is a revolving line of credit secured by a home, while a home equity loan is typically a lump-sum loan. The distinction matters because HELOCs usually carry variable rates, while home equity loans typically have fixed annual percentage rates, according to the CFPB and the Federal Trade Commission. (yahoo.com) The FTC says HELOC borrowers make payments on the amount they actually draw, not the full approved line, and the APR is usually variable. Home equity loan borrowers, by contrast, generally receive a fixed amount upfront and repay it in equal monthly installments over a set term. ### How low are these rates compared with earlier in 2026? (files.consumerfinance.gov) IndexBox said Curinos data showed the average HELOC rate at 7.21% on May 8, down from 7.24% at the start of April, while the average fixed-rate home equity loan was 7.36%, down from 7.37% at the start of April. The same report said the 2026 low for HELOCs was 7.19% in mid-March, and that 7.36% matched the 2026 low for home equity loans first seen in mid-March. (consumer.ftc.gov) Yahoo Finance’s May 17 rates item repeated the same Curinos averages — 7.21% for HELOCs and 7.36% for home equity loans — and said the home equity loan figure matched the 2026 low first observed in mid-March. ### Why do HELOC rates move with the prime rate? The Federal Reserve Bank of St. Louis’ FRED database showed the bank prime loan rate at 6.75% in the latest daily observation, dated May 8 and updated May 11. (indexbox.io) IndexBox said the prime rate serves as the common index for HELOC pricing, with lenders adding a margin on top of that benchmark. (yahoo.com) IndexBox gave an example of a lender adding a 0.75 percentage-point margin to the 6.75% prime rate, producing a 7.50% variable HELOC rate. The report also said lenders set final pricing based on factors including credit score, total debt and combined loan-to-value ratio. ### Why might one website show 7.21% and another show 7.26%? (fred.stlouisfed.org) Bankrate said its 7.26% national average HELOC rate was based on a survey of the nation’s largest home equity lenders and was measured as of May 6. Yahoo Finance’s 7.21% figure was attributed to Curinos, and IndexBox said those Curinos averages were based on borrowers with a minimum credit score of 780 and a combined loan-to-value ratio below 70%. (indexbox.io) Those differences mean the published averages are not necessarily in conflict. They can reflect different lender sets, different borrower assumptions and different observation dates. That is an inference based on the methodologies and dates disclosed by Bankrate and IndexBox. ### What should borrowers watch next? May 18 is the next release date listed on FRED for the bank prime loan rate series. (bankrate.com) Bankrate also continues to update its HELOC survey, and Yahoo Finance has been publishing daily home equity rate roundups that cite Curinos averages. The CFPB says borrowers considering a HELOC should compare offers and understand that the loan is secured by the home. (bankrate.com) The FTC says shopping around for a home equity loan or HELOC can help borrowers get better terms and a better deal. (files.consumerfinance.gov) (fred.stlouisfed.org)