With the Fed widely expected to make two additional rate cuts this year, HELOC rates may fall even further in 2025. sakchai vongsasiripat/Getty Images

Interest rates are cooling overall, which has led to more affordable costs on borrowing products like mortgages, personal loans and other lending options. But home equity lines of credit (HELOCs) , in particular, have become significantly more affordable over the past year.

One of the primary drivers of the recent rate declines has been the Federal Reserve, which cut its benchmark rate three times to close out 2024, leading the federal funds rate to decline by a full point. As is often the case, average HELOC rates fell in tandem, dropping from 9.36% in September 2024 to 8.48% by the end of the year.

And, HELOC rates h

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