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HELOC Rates Drop: 85% Chance of Further Declines in 2026

12/10/2025

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Summary

Story summary

Home equity line of credit (HELOC) rates fell from 9.18% in June 2024 to just below 8% by December 2025, driven by Federal Reserve rate cuts.
Experts forecast an 85% chance that rates will continue to decline in 2026, with cuts of 25 basis points.
A rate rise remains unlikely, with only a 5% chance if inflation pressures the Federal Reserve.
For stability, a fixed-rate home equity loan may be preferable.

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Story summary

Home equity line of credit (HELOC) rates fell from 9.18% in June 2024 to just below 8% by December 2025, driven by Federal Reserve rate cuts.
Experts forecast an 85% chance that rates will continue to decline in 2026, with cuts of 25 basis points.
A rate rise remains unlikely, with only a 5% chance if inflation pressures the Federal Reserve.
For stability, a fixed-rate home equity loan may be preferable.