The home equity loan interest rate forecast this month is a positive one for many borrowers. Renata Hamuda/Getty Images

The Federal Reserve cut the federal funds rate for the first time in 2025 in September, influencing rates across a number of borrowing options, including home equity loans . These options, and in particular variable-rate home equity lines of credit (HELOCs) , track short-term benchmarks like the prime rate, which often moves with the Fed rate. When that happens, a 0.25% Federal rate cut, for example, could quickly lower your monthly costs.

That's good news for millions of American homeowners starving for more affordable borrowing options, particularly after inflation ticked up 0.4% in August to 2.9%. That means the costs of everyday living are higher an

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