Quick answer
The Fed held rates at 3.50%–3.75% on July 29, 2026, then raised them 0.25% to 3.75%–4.00% on September 16. The prime rate rose from 6.75% to 7.00%, so variable HELOC rates are up 0.25%, about $10.42 a month more per $50,000 of balance on interest-only payments. Fixed-rate home equity loans already closed don't change.
The decisions
| Meeting | Decision | Fed funds range | Vote | Prime after |
|---|---|---|---|---|
| July 28–29, 2026 | Hold | 3.50%–3.75% | 9–3 (Hammack, Kashkari, and Logan preferred a 0.25% increase) | 6.75% |
| September 15–16, 2026 | Raise 0.25% | 3.75%–4.00% | 12–0 | 7.00% |
The July vote already showed the shift: three officials wanted to raise rates. By September the committee agreed unanimously, citing inflation that remains above its 2% goal while the economy keeps growing. It was the first change to prime since December 2025, after five straight holds in 2026. Source: Federal Reserve FOMC statements, July 29 and September 16, 2026.
What it means for your HELOC
HELOCs are priced as prime + a margin. Your margin doesn't change; prime does. Most lenders apply the new prime within one or two statement cycles.
| Balance | Interest-only payment before (example 7.75%) | After (example 8.00%) | Monthly change |
|---|---|---|---|
| $25,000 | $161.46 | $166.67 | +$5.21 |
| $50,000 | $322.92 | $333.33 | +$10.42 |
| $100,000 | $645.83 | $666.67 | +$20.83 |
| $200,000 | $1,291.67 | $1,333.33 | +$41.67 |
Example assumes prime + 1.00%. Your margin and payment type (interest-only or principal and interest) set your actual numbers.
If you already have a HELOC
- Expect a small increase on your next statement or the one after: 0.25% on your balance.
- Pay down the highest-cost balance first if you carry balances on cards or other variable debt as well.
- Ask about a fixed-rate option. Many HELOCs let you lock part of your balance at a fixed rate. That protects you if the Fed raises again.
If you're shopping for a HELOC
- Advertised rates have already moved. Most lenders updated within a few business days of September 16.
- Compare a HELOC with a fixed home equity loan if you'll borrow the full amount at once and want payment certainty. See HELOC vs. home equity loan.
- Keep your first mortgage if its rate is low. Even after the increase, a HELOC on top of a low-rate mortgage usually beats a cash-out refinance. Run the blended-rate test.
- Don't wait for a cut that may not come. If you have a real need, a 0.25% move costs about $125 a year per $50,000.
What's next: October and December meetings
The Fed meets again on October 27–28 and December 8–9, 2026. As of late September, markets were split between another hold and a second increase, which would put prime at 7.25%. Every 0.25% move changes a HELOC payment by about $10 a month per $50,000 on interest-only terms. We'll update this page after each meeting.
Compare state rates
Our Q3 2026 State HELOC Rate Study uses July 2026 data, before this increase. Add roughly 0.25% to its figures for today's pricing.
Frequently asked questions
What is the prime rate now?
The prime rate is 7.00%, effective September 16, 2026, after the Federal Reserve raised the federal funds target range by 0.25% to 3.75%-4.00%. Prime had been 6.75% since December 2025.
Did the Fed raise rates in September 2026?
Yes. On September 16, 2026 the FOMC voted 12-0 to raise the federal funds target range by 0.25% to 3.75%-4.00%. In July it had held rates steady by a 9-3 vote, with three officials preferring an increase.
How much will my HELOC payment go up?
A 0.25% increase adds about $5.21 a month per $25,000, $10.42 per $50,000, and $20.83 per $100,000 of balance on interest-only payments. Principal-and-interest payments rise by a similar amount.
When does the Fed meet next?
The remaining 2026 FOMC meetings are October 27-28 and December 8-9.
Should I get a fixed-rate home equity loan instead of a HELOC?
If you'll borrow the full amount at once and want a payment that can't rise, a fixed home equity loan or a fixed-rate draw on a HELOC can make sense. If you'll draw over time and repay within a few years, a HELOC's flexibility usually still wins.
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Keep reading
How Often Do HELOC Rates Change?
How prime moves flow into your payment.
HELOC Interest Rates in 2026
How rates are built and how to get the best one.
HELOC vs. Home Equity Loan
Variable line or fixed lump sum?