I'm Greg McBride, senior financial analyst with Bankrate.com and here is your weekly look at home equity rates.
The prolonged low rate environment has been a blessing to home equity borrowers. Rates for both fixed and variable rate home equity products are lower than they were 6, 12, and 24 months ago. This week, the average fixed rate home equity loan dipped for the 7th time in the past 9 weeks, 6.49 percent. The average variable rate home equity line of credit was unchanged at 5.26 percent.
The slow drift lower in rates has been good news regardless of whether you're in the market for a variable rate line of credit or a fixed rate home equity loan. The lower fixed rates are attractive to lump sum borrowers or even those looking to refinancing a home equity loan taken out in years of higher interest rates.
And the variable rate line of credit is unlikely to show any type of upward movement as long as the Federal Reserve is planted on the sidelines holding interest rates steady. The amount borrowed from the home equity line now will eventually see higher rates, but that move is not in the foreseeable future.
For more information on home equity loans and home equity lines of credit, and to check home loan rates in your area, go to Bankrate.com.
I'm Greg McBride.