Home equity rates see slight gains, with a $30,000 HELOC at 7.32% and a five-year $30,000 home equity loan at 7.92%. Rates remain near three-year lows. The increase is attributed to homeowners seeking alternatives to high credit card interest rates, says Joshua Smith of Peoples National Bank.

HELOC rates are influenced by Federal Reserve policies and inflation expectations. The Fed kept interest rates steady in January, monitoring inflation and job market trends. Bankrate’s Ted Rossman predicts three quarter-point rate cuts in 2026. Home equity loans are seen as a cost-effective option compared to credit cards due to their collateral nature.

HELOCs and home equity loans offer lower rates compared to credit cards and personal loans. The average rates for HELOCs and home equity loans stand at 7.32% and 7.92%, respectively. In contrast, credit card rates average at 19.60% and personal loan rates at 12.16%. Data is based on Bankrate’s national survey of lenders as of Feb. 11.

Read more at Yahoo Finance: HELOC and home equity rates tick modestly higher