HELOC rates are at their lowest level since 2023. Here's why (and what to do next).

HELOC interest rate declines should be strategically leveraged by homeowners in need of extra financing. zimmytws/Getty Images

Interest rates for home equity lines of credit (HELOCs) continued to decline this week, according to new data released by Bankrate . Now at an average of just 7.82%, rates here are the lowest they've been since March 2023, offering homeowners a cost-effective way to borrow in today's still largely elevated interest rate environment. That makes a HELOC cheaper than home equity loan counterparts and materially less expensive than personal loans and credit cards, both of which come with interest rates in the double digit range currently.

Still, this much lower interest rate comes with a catch: HELOC rates are variable and subject to change each mon