HELOC rates fluctuate due to tariffs and political pressure for rate cuts

From Yahoo Finance: 2025-05-30 06:00:00

HELOC rates fluctuated as tariffs caused uncertainty, with President Trump meeting Fed Chairman Powell to push for rate cuts. Zillow reports a 2 basis point increase to 6.89% for 10-year HELOCs, while VA-backed HELOCs dropped to 6.34%. Homeowners hold over $34 trillion in home equity, making HELOCs a viable option.

HELOC rates are influenced by factors like credit scores and debt levels, with average rates often lower than prime rate plus margin. Introductory rates may lead to higher adjustable rates later. Keeping a low-rate mortgage while accessing home equity through a HELOC is a smart financial move.

The best HELOC lenders offer low fees, fixed-rate options, and flexible credit lines, allowing homeowners to use their equity wisely while paying down their primary mortgage. Shopping around for the best rates and terms is crucial, as rates can vary widely depending on creditworthiness and lender policies.

For homeowners with low primary mortgage rates and substantial equity in their homes, now is a great time to consider a HELOC for home improvements, repairs, or even a vacation. Understanding the terms, fees, and repayment structure is key to maximizing the benefits of a HELOC while avoiding long-term debt burdens.

Read more: Interest rates edge slightly higher