What’s the HELOC and home equity loan interest rate forecast for summer 2026?

This summer, the cost of borrowing against home equity might be influenced by several factors. Although home equity loan rates have been declining steadily over the past year, recent weeks have seen an uptick due to the Federal Reserve’s decision to maintain its federal funds rate since late 2025, coupled with rising inflation. Experts suggest that for rates to decrease, there needs to be a resolution to the Iran conflict, a reduction in inflation, and a contraction in the job market. Lower inflation could prompt the Fed to cut its rate, leading to a drop in the prime rate, which directly affects HELOC rates. However, experts like Adam Slack and Jeff DerGurahian are not optimistic about significant rate declines in the near future, suggesting that homeowners should not expect a meaningful drop soon. QUESTION: How might rising home equity loan and HELOC rates impact homeowners’ financial decisions this summer?