Your Home's Hidden Treasure Chest Just Got Cheaper to Open: HELOC Rates Tumble After Prime Rate Cut
Major Rate Drop Unlocks Trillions in Home Equity
NEW YORK, NY – Homeowners sitting on mountains of equity just received the green light they’ve been waiting for. The cost to tap into your home's value is officially falling, with a recent slash in the prime rate poised to make borrowing even more affordable in the coming weeks.
As of November 2, 2025, the average rate for a home equity line of credit (HELOC) has hit a 2025 low, settling at 7.75%, according to fresh data from analytics company Curinos. But here’s the real story: that attractive number doesn't even factor in the latest quarter-point drop in the prime rate. Experts predict this will soon trigger a new wave of rate cuts from lenders, creating a golden opportunity for savvy homeowners.
This news comes as a massive relief for those feeling locked in by high mortgage rates. With conventional mortgage rates lingering above 6%, the idea of selling or doing a cash-out refinance—and giving up a cherished 3% or 4% primary mortgage—is a non-starter for most. The HELOC emerges as the perfect solution, allowing you to access cash without disturbing your fantastic existing mortgage rate.
The scale of this opportunity is staggering. At the end of 2024, American homeowners were collectively sitting on over $34 trillion in home equity, the third-largest amount ever recorded by the Federal Reserve. This vast reservoir of wealth can be a game-changer for funding home renovations, consolidating high-interest debt, or covering major life expenses. The falling rates are essentially the key to unlocking that value.
Of course, the best deals are reserved for the most qualified applicants. The 7.75% average rate is based on borrowers with excellent credit scores (780 or higher) and a conservative combined loan-to-value ratio of 70%. However, the downward trend is a positive signal across the board.
For homeowners who have been watching from the sidelines, the message is clear: the time to act is now. As the effects of the prime rate cut ripple through the market, the cost of accessing your home’s built-in wealth is set to become more appealing than it has been all year.
