Home Equity
Rate: 5.37 percent (line of credit); 8.43 percent (loan)Rates on home equity products rose this week.
The average home equity line of credit, or HELOC, increased 11 basis points to 5.37 percent. HELOC rates have risen by more than 30 basis points over the past three weeks.
Meanwhile, home equity loan rates increased by 5 basis points, to 8.43 percent.
In recent months, many lenders have stopped offering new home equity products and also restricted borrower access to existing lines of credit. Falling home values are the major reason for this reluctance to borrow.
This week brought new evidence that home values continue to plunge. In fact, the fall may be accelerating.
American homeowners lost $3.3 trillion in home value during 2008, according to the real estate Web site Zillow.com. More than 40 percent of that decline took place in the fourth quarter, which saw homeowner values plummet by $1.4 trillion.
By contrast, home value losses for all of 2007 came to $1.3 trillion.
To find the best home equity loan rates in your area, check Bankrate's interactive tool.
-- Chris Kissell