By Linda Bell, Bankrate.com

The Federal Reserve just did something it hadn’t yet done in 2025: It lowered its benchmark overnight lending rate.

While the markets largely expected September’s quarter-point rate cut , it does mark the beginning of a potential easing cycle after months of holding rates steady. That matters for homeowners because the Fed’s decisions ripple through to home equity loan and HELOC rates , shaping how expensive (or affordable) it is to tap into the value of your home.

The natural questions now are: How much rate relief can home equity borrowers actually expect? And how might that impact the appetite for borrowing?

Fed tightening to improve home equity rates

If you’ve got a HELOC, you know that the Fed’s moves matter. HELOCs have variable rates tied directl

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