3 factors that could raise (or lower) your HELOC limit this August

There are a few different factors that could impact your HELOC limit this August, and some of them may surprise you. Getty Images

This is a prime moment for homeowners who are considering tapping into their home equity with a home equity line of credit (HELOC). With HELOC rates recently dropping to an average of 8.13%, their lowest level since May, and the Federal Reserve's next meeting in September carrying a high likelihood of a rate cut , many homeowners are eyeing their home equity as a source of accessible cash. But while the rate environment might seem favorable, the lending landscape is more complex than headlines suggest.

The housing market is sending mixed signals this summer. The average amount of home equity is still high at about $313,000 , but has