Fed Hikes Rates: What Homeowners Will Pay Now
The Federal Reserve raised its main interest rate to 3.75% to 4% on September 16, 2026, up from 3.5% to 3.75%. The vote was unanimous. Yahoo Finance
That is an increase of a quarter point. Before the decision, the rate was about 3.6%. AP
On the same day, Bankrate updated its rate pages for September 2026. Its survey put the national average HELOC rate at 7.26% as of September 9, 2026. Bankrate
The same update put the national average home equity loan rate at 8.13% as of September 9, 2026. Bankrate
For a $30,000 credit line, Bankrate reported a rate of 7.17%, down one basis point. A basis point is one-hundredth of a percentage point. Bankrate
Those dates matter. The surveys show rates on September 9. The Fed voted on September 16.
The broader context here is simple. A HELOC works much like a credit card backed by your home, so its rate moves with the Fed. A home equity loan is a one-time lump sum with a fixed rate and fixed payment.
Looking at what this means for bank balance sheets, the loan average was 87 basis points above the HELOC average, or 0.87 points. Funding costs move fast after a hike. The question is how fast banks pass the increase to borrowers and how much they absorb.
In my view, watch what happens next. People with a HELOC will see rates reset higher on their own. New borrowers must choose between flexibility and certainty. Lenders must choose between loan volume and profit. Watch use of old credit lines and late payments on second liens. Policy acts with a lag. Pricing moves fast.
