US borrowers confront record home equity, soaring rates and credit‑card debt

Homeowners in the United States are sitting on a record level of home equity, prompting advice on three ways to tap that equity without refinancing: a home‑equity loan at an average 6.96% rate, a HELOC at about 7.11%, or a reverse mortgage for borrowers 62 and older.

Mortgage borrowing costs remain high, with the average 30‑year rate at 6.37% and the 30‑year refinance rate at 6.66% as of May 5, 2026. These rates are higher than recent months but still near historical norms.

For savers, the average FDIC‑reported savings‑account rate is 0.38%, yet online high‑yield accounts now offer between 3.10% and 4.30%. A $30,000 deposit can earn roughly $300‑$900 over nine months depending on whether it’s placed in a CD, high‑yield savings account, or money‑market account.

Credit‑card debt has reached a record $1.23 trillion nationwide, with the average borrower carrying about $6,600 at APRs over 21%. Experts advise keeping balances below roughly 30% of available credit to avoid credit‑score damage and financial strain.

Debt‑consolidation via personal loans remains an option; average personal‑loan rates sit near 12% versus credit‑card rates above 21%, offering potential interest‑cost savings for qualified borrowers.