Will HELOC Rates Go Down in 2027?

8 min read · LenderMatch Learn

HELOC rates are not on track to fall in 2027, based on the Federal Reserve’s latest projections: in September 2026 the median Fed official put the federal funds rate at 4.1% at the end of 2027, unchanged from the end of 2026. Most HELOCs charge the prime rate (7.00% on October 29, 2026) plus a margin, and by our arithmetic that projection points to a prime rate near 7.25% in 2027, a quarter point higher, not lower.

Below: how the forecast translates into prime, what a $75,000 line would cost under each scenario, and how to lock part of a balance if you want a fixed payment. Prime is the same for every borrower, but the margin is set by each lender, so comparing HELOC offers is how you find a lower one.

Updated October 30, 2026, after the Fed’s October 28 meeting. We update this page after every Fed meeting (next: December 8 and 9, 2026, with new projections) and whenever the prime rate changes.

Will HELOC rates go down in 2027?

Not if the Fed’s own projections hold. A variable HELOC rate has two parts: an index, almost always the prime rate, and a margin the lender adds. The CFPB describes the margin as “an extra percentage that the lender adds to the index.” Your margin is set when you open the line and usually stays the same, so a HELOC rate moves only when prime moves.

Prime, in turn, follows the Fed. Today the Fed’s target range is 3.75% to 4.00% and prime is 7.00%, exactly 3 points above the top of that range. Prime has historically been set at the top of the target range plus 3 points; we use that convention to translate the Fed’s projections below. The translation is our arithmetic, not a forecast by the Fed or anyone else.

For current numbers, see HELOC rates today and our prime rate page, which updates from Federal Reserve data every day.

HELOC rate forecast: what the Fed projects for prime

Four times a year, Fed officials publish where they expect the federal funds rate to be at the end of each year. The latest projections are from September 16, 2026.

Fed figures from the FOMC Summary of Economic Projections. Implied prime is LenderMatch’s arithmetic: each projection rounded to the quarter-point target range it falls in, with prime set 3 points above the top of that range. Not a forecast by the Federal Reserve.

Three things stand out:

• The forecast moved up. The median for the end of 2027 rose from 3.6% in June to 4.1% in September.
• The middle of the pack sees no cut. The median for the end of 2027 (4.1%) matches the median for the end of 2026. Read against today’s 3.75% to 4.00% range, that implies one more quarter-point increase by the end of 2026 and then a hold through 2027 (our reading of the numbers).
• Officials disagree. The central tendency for the end of 2027 runs from 3.6% to 4.4%, so the plausible range for prime by our arithmetic runs from 6.75% to 7.50%.

Private forecasters lean the same way. The Mortgage Bankers Association said on October 12, 2026 that it expects “two additional 25 basis point hikes, one in December of this year and the second in the first quarter of 2027.” Two more quarter-point increases would put the top of the range at 4.50% and, by the same arithmetic, prime at 7.50%.

Will HELOC rates go down in 2026?

Not likely before year end. On October 28, 2026 the Fed held its target range at 3.75% to 4.00% on a 10 to 2 vote, and both dissenters wanted a quarter-point increase. The only meeting left in 2026 is December 8 and 9. Prime has moved only after Fed decisions over the past two years: it fell to 6.75% on December 11, 2025 and rose back to 7.00% on September 17, 2026, the day after the Fed’s last increase.

What a $75,000 HELOC would cost in each scenario

Say you draw $75,000 and make interest-only payments during the draw period, which the CFPB notes some plans allow. Your rate is prime plus your margin. Here is the monthly payment at two example margins, 0.50 point and 1.00 point, under each prime rate from the table above.

Interest-only payment = balance × rate ÷ 12, rounded to the dollar. Margins are examples, not offers. Calculated by LenderMatch.

What the numbers say:

• A quarter point in prime is about $15.63 a month on $75,000. The Fed’s median path adds that much; a full swing from the low end to the high end of the range is about $47.
• The margin matters as much as the Fed. The gap between a 0.50 and a 1.00 point margin is $31.25 a month, or $375 a year, the same as two quarter-point Fed moves. Unlike prime, that gap lasts for the life of the line.
• The draw period ends. When repayment starts you pay principal too. At 8.00%, repaying $75,000 over 20 years costs about $627 a month, against $500 interest-only.

Try your own numbers in the HELOC payment calculator, and see the variable-rate HELOC guide for caps and floors.

Fixed-rate HELOC options: locking part of your balance

If you want a payment that doesn’t depend on the Fed, you have two routes. The CFPB notes that “some HELOCs let you convert some of your balance to a fixed interest rate,” and that the fixed rate “is typically higher than the variable rate, but it means more predictable payments.” A home equity loan, the other route, gives you one lump sum, generally at a fixed rate.

A lock does not have to cover everything. Say you lock $40,000 of the $75,000 for 10 years at an example rate of 8.75%, while the variable rate is 8.00% (prime 7.00% plus 1.00). The locked portion costs about $501 a month, against about $485 if the same $40,000 were repaid over 10 years at a variable rate that stayed at 8.00%. Over 10 years, the lock adds about $1,920 in interest if prime never moves.

For the lock to come out ahead, the variable rate would have to average more than about 8.75% over those 10 years, meaning prime above about 7.75%. That is higher than any figure in the Fed’s 2027 central tendency (7.50% by our arithmetic). So a lock is best thought of as insurance against a payment shock, not a bet that beats the forecast. It tends to suit a large balance carried for years.

Lock minimums, fees and the number of locks you can hold differ by lender. Our fixed-rate HELOC guide compares published lock terms.

Is now a good time to get a HELOC?

It depends on why you need the money, not on the forecast alone. A few points to weigh:

• A variable rate is not locked in at today’s level. If prime does fall, your rate follows on the next adjustment date, down to any floor in your agreement.
• Federal rules require a stated maximum. Under Regulation Z, a variable-rate line secured by your home must state the maximum rate it can charge, and the lender’s disclosures must show the minimum payment at that rate (on a $10,000 balance) before you open the line.
• The margin is your lever. Lenders base it on factors such as your credit and how much of your home’s value you borrow. See how much equity you can borrow to estimate your line.

When the HELOC rate forecast will change

Prime typically changes the day after a Fed decision. These are the dates to watch; each 2027 date is tentative until confirmed at the meeting before it.

• December 8 and 9, 2026 (new projections)
• January 26 and 27, 2027
• March 16 and 17, 2027 (new projections)
• April 27 and 28, 2027
• June 8 and 9, 2027 (new projections)
• July 27 and 28, 2027
• September 14 and 15, 2027 (new projections)
• October 26 and 27, 2027
• December 7 and 8, 2027 (new projections)

Frequently asked questions

Will HELOC rates go down in 2027?

The Federal Reserve’s latest projections do not point that way. In September 2026 the median Fed official projected a 4.1% federal funds rate at the end of 2027, the same as at the end of 2026. Most HELOCs follow the prime rate, and by our arithmetic that projection implies a prime rate near 7.25% in 2027, against 7.00% on October 29, 2026.

Will HELOC rates go down in 2026?

Not likely before the year ends. The Fed held rates on October 28, 2026, with two officials voting for an increase, and its only remaining 2026 meeting is December 8 and 9. The Mortgage Bankers Association expects a quarter-point increase at that meeting.

How much would a 0.25 point change in prime change my HELOC payment?

On an interest-only payment, about $15.63 a month per $75,000 owed, or $10.42 per $50,000, starting on the next adjustment date in your agreement.

Should I wait for rates to drop before getting a HELOC?

Waiting is a bet on the Fed. Its projections show no cut through 2027, and a variable line falls on its own if prime does fall, so the rate you open with is not locked in. The margin is the part that stays with you, which is why comparing offers matters more than timing.

Can I lock my HELOC rate?

Many lenders let you convert some or all of your balance to a fixed rate. The CFPB notes the fixed rate is typically higher than the variable rate, but it makes your payment predictable. Lock rules, minimums and fees vary by lender.

Does LenderMatch check my credit?

No. LenderMatch never pulls your credit. A lender you choose may check it, with your permission, when you apply.

Compare HELOC margins from several lenders →