Home equity loan borrowing rises amid record equity levels

Home equity borrowing is increasing across the United States as homeowners leverage record-high equity levels. As of September 16, 2026, the average interest rate for a home equity loan is approximately 8.14%, though qualified borrowers with strong credit may access lower rates.

Financial experts advise approaching these loans strategically. Because funds are typically distributed as a lump sum and require immediate repayment, failure to meet agreed-upon terms carries a significant risk of foreclosure.