I'm Greg McBride, senior financial analyst with Bankrate.com and here is your weekly look at home equity rates.
Rates for both fixed and variable rate home equity products moved lower this week. The average variable rate home equity line of credit dropped to a 3-month low of 5.21 percent, while the average fixed rate home equity loan reversed course back to where it was at the end of May, at 6.44 percent.
The low home equity rates are 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.
With the Federal Reserve expecting to keep short-term interest rates on hold until at least late-2014, the variable rate line of credit is unlikely to show any type of upward movement. The amount borrowed from the home equity line now will eventually see higher rates, but that move is likely a few years off.
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.