HELOC Rates Remain Stable Ahead of Fed Rate Announcement

As of August 23, 2025, HELOC rates remain mostly unchanged with little movement expected before the next Federal Reserve interest rate announcement on September 17. The average APR on a 10-year draw HELOC is 8.72% according to Bank of America. Homeowners can access home equity with a use-it-as-you-need-it HELOC, which can be an alternative to selling their home with a low-interest primary mortgage. Lenders determine HELOC interest rates based on an index rate plus a margin, and rates can include introductory rates that may only last for six months or one year.