“With the Fed still holding benchmark interest rates steady, there isn’t a catalyst for a meaningful decline in home equity rates,” says Bankrate Chief Financial Analyst Greg McBride, CFA. “Variable-rate HELOCs will stair-step lower in response to Fed rate cuts, whenever that happens.”

The Federal Reserve left interest rates unchanged for a fifth straight meeting, with policymakers stuck in a prolonged wait-and-see mode as President Donald Trump’s tariffs leave them wary of cutting borrowing costs too soon.