3 things HELOC borrowers should watch for now

Whether you’re considering borrowing equity from your home via a home equity line of credit (HELOC) or have already done so and are making repayments, recent months have brought positive news. Not only did HELOC interest rates fall for much of 2024 but they continued that downward trend in 2025. They hit an 18-month low in January, a two-year low in February and then continued to fall in March. Now at just 8.06% for qualified borrowers, HELOCs are materially lower than they were at the start of 2024, when they were averaging 10.16%.

And that change in rates is a benefit for both prospective borrowers and existing ones, thanks to the variable rate structure that HELOCs come with. HELOC rates change independently each month, without having to be refinanced, so some borrowers who already have a HELOC, for example, are likely already seeing their monthly payments reduced.

Still, with any product that has a variable interest rate, it behooves borrowers to stay alert, particularly in today’s evolving economic climate. So, what, exactly, should HELOC borrowers be monitoring now? Below, we’ll detail three timely things they should watch for.

Start by seeing how low of a HELOC rate you’d be eligible for here.

3 things HELOC borrowers should watch for now

Here are three timely things that HELOC borrowers should be closely monitoring now:

This week’s inflation reading

The Bureau of Labor Statistics will release its next inflation reading, this time for February, on March 12. And it’s a critical reading to watch for after the inflation rate increased in the last four straight months. Should the rate increase yet again, it could reverberate throughout the economy and cause market concerns over an extended fight to tame inflation. While an increase in inflation won’t directly impact HELOC rates, it could have a major impact on Federal Reserve monetary policy, which could affect HELOCs. And it won’t take a particularly long time to occur with the Fed’s next meeting set for March 18 and March 19, so monitor tomorrow’s reading for signs of possible rate changes to come.

Explore your current HELOC options online now.

Next week’s Fed Reserve meeting

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