HELOC interest rates just fell below 8%. Here's why it's worth opening one this fall.

HELOC interest rates are declining and set to fall further this fall. Dragon Claws/Getty Images

The ramifications of the Federal Reserve's interest rate cut last week are still reverberating throughout the economy and, in particular, the borrowing climate.

The latest evidence came on Thursday after the average interest rate on a home equity line of credit (HELOC) dropped to just 7.88%. That marked a 17 basis point drop in just one week, according to Bankrate .

It also opens up a wide range of borrowing possibilities for homeowners now, especially considering that the average owner has over $300,000 worth of equity to work with. Cumulative home equity levels in the country, meanwhile, just rose to a record $17.8 trillion, an August report detailed. So there's plen