HELOC rate history: how rates have tracked prime

Variable HELOC rates don't have a history of their own. They move with the prime rate, point for point, and your margin rides on top.

Reviewed by Shawn Way, NMLS #1007298★ 4.9 from 111 reviewsUpdated October 28, 2026

Why HELOC history is prime history

Almost every variable HELOC sets its rate as APR = prime + margin. Your margin is fixed when you open the line. Prime is the index that moves. So the rate on an existing HELOC changes only when prime changes, and by exactly the same amount, subject to any cap or floor in your agreement. See what a HELOC margin is and HELOC rate caps and floors.

The prime rate published by the Wall Street Journal is conventionally set at the upper bound of the Federal Reserve's federal funds target range plus 3 points. That's why prime, and every HELOC tied to it, changes on the day of a Fed rate decision rather than drifting day to day like mortgage rates. More on the index itself: the prime rate today.

Recent prime rate changes

Each change below followed a Fed decision. A variable HELOC tied to prime moved by the same amount on its next rate adjustment.

To see what a HELOC rate was on any of these dates, add your margin to the prime rate shown. A line at prime + 0.50, for example, was 0.50 point above each figure in the table.

Notice the pattern: every change was a quarter point, and prime sat unchanged for months between them. That's typical of how the Fed moves. It also means a HELOC rate can stay flat for long stretches and then step up or down on a single day. If you're comparing HELOC rates from different dates, compare the margin each borrower got, not the total rate, since prime alone explains most of the difference.

What a 1-point move does to your payment

During the draw period, many HELOCs require interest-only payments, so the math is direct. Each 1 point of rate on a $100,000 balance is $100,000 × 1% = $1,000 a year, or $83.33 a month.

Example. These are illustrative numbers. You have a $100,000 balance on a line priced at prime + 0.50, interest-only.

• If prime is 7.00%, your rate is 7.50%: $100,000 × 7.50% ÷ 12 = $625.00 a month.
• If prime rises 1 point to 8.00%, your rate is 8.50%: $100,000 × 8.50% ÷ 12 = $708.33 a month, $83.33 more.
• If prime falls 1 point to 6.00%, your rate is 6.50%: $100,000 × 6.50% ÷ 12 = $541.67 a month, $83.33 less.

Scale it to your balance: a quarter-point move on $100,000 is about $20.83 a month; a 1-point move on $50,000 is about $41.67. In the table above, prime moved from 7.25% in September 2025 to 6.75% in December 2025, a half-point drop worth about $41.67 a month on $100,000. The September 2026 increase of 0.25 point added back about $20.83. Once your line enters repayment, principal is added, so the payment is higher and a rate change moves it slightly differently. Try different rates in the HELOC payment calculator, or see how HELOC interest is calculated.

New offers vs. existing lines

History works a little differently for someone shopping today. Your existing line's margin never changes, but the margins lenders offer new borrowers do shift with competition and credit conditions. So a new HELOC's rate depends on today's prime plus today's typical margin for your credit tier. Current typical ranges are on our HELOC rates page.

What to watch next

• Fed meetings. The next one is October 28, 2026. A change in the target range moves prime the same day or the next business day.
• Your adjustment schedule. Your agreement says how often your rate resets, often monthly, and which day's prime it uses.
• Caps and floors. A lifetime cap limits how high your rate can go; a floor limits how low.

No one can promise where prime goes next. Your home secures the line, so borrow an amount whose payment still works if rates rise a point or two. For more on timing, see should you wait for rates to drop?

To see your own numbers, get your HELOC rate from Shawn. Nothing on this page is an offer to lend.

What borrowers actually paid each month, from Shawn Way's team's funded HELOCs: the HELOC Rate Index.

Questions people ask

Do HELOC rates go up when the Fed raises rates?

Yes, for variable HELOCs tied to prime. Prime moves by the same amount as the Fed's target range, and your rate follows at its next adjustment.

How often do HELOC rates change?

Variable HELOC rates change only when the prime rate changes, which happens on Fed decision days. Your line then adjusts on the schedule in your agreement, often monthly.

How much does a 1% rate increase add to a HELOC payment?

A 1% rate increase adds about $83.33 a month, or $1,000 a year, to an interest-only HELOC payment for every $100,000 you owe. Once repayment starts, principal is added, so the change differs slightly.

Will HELOC rates go down?

HELOC rates will go down if the Fed lowers its target range, because prime falls with it and variable lines follow. Watch the Fed meeting on December 9, 2026; no one can know the outcome ahead of time.

Does my HELOC margin change over time?

Usually not. The margin is set when you open the line and stays fixed; only the prime rate moves.

More in HELOC guides

• Credit score for a HELOC
• HELOC closing costs and fees
• How long a HELOC takes
• Does a HELOC require an appraisal?
• Is HELOC interest tax deductible?
• Fixed-rate HELOC options
• Can you pay off a HELOC early?
• How to refinance a HELOC

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