Borrowing against home equity has long been an affordable option for property owners. In fact, both home equity loan and home equity line of credit (HELOC) rates remained well below the cost of alternatives such as credit cards in the post-pandemic era — even as consumer borrowing costs rose across the board in response to the Federal Reserve's interest rate hikes aimed at combating inflation.

These are today's mortgage and refinance rates. Mortgage rates increased in recent months, and where they go next depends on the economy.

Home equity loans and home equity lines of credit (HELOCs) allow homeowners to tap into the value of their homes. A home equity loan is a fixed-rate, lump-sum loan that allows homeowners to borrow up to 85% of their home’s value and pay that amount back in monthly installments.

W ould-be home buyers have faced unprecedented challenges in the housing market in the post-pandemic era as surging home prices combined with high mortgage rates made homeownershi