If you’ve been contemplating borrowing money via your home equity, now could be a good time to act. While interest rates are at record highs on credit cards and personal loan interest are rates approaching 13% right now, rates on a home equity loan or home equity line of credit (HELOC) are still in the single digits. And rates on both products are on the decline and likely to fall further in November. This is especially true for HELOCs, which have variable interest rates subject to change monthly based on market conditions. That’s a distinct disadvantage in the rate climate borrowers have lived through in recent years but is now a major boost as interest rates are falling again.

If you’re considering a HELOC, in particular, which works as a revolving line of credit similar to credit cards, you’re likely in luck. There are multiple ways in which HELOC interest rates could drop again in November. Below, we’ll detail three of them.

Start by seeing what HELOC interest rate you can qualify for here.

3 ways HELOC interest rates could drop in November

Here are three separate ways HELOC interest rates, currently at an average of 8.69%, could drop even further in the new month:

Unemployment could fall again

The first day of the new month could be an indicator of positive rates news. Encouraging unemployment data released on November 1 showing an addition of more jobs and a drop in the unemployment rate, could spark a reduction in HELOC interest rates. This data is often used as a measurement of economic health. A lower number here, then, could encourage the Fed to keep cutting interest rates. Knowing this, lenders may start reducing their HELOC offers.

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The Fed could cut rates again

This is the most obvious way HELOC rates could fall again and it could occur after the next Federal Reserve meeting on November 7. The Fed’s first rate cut of 2024 in September caused HELOC rates to decline, so another one issued here will likely do the same, possibly even before the Fed makes it official as some lenders will price in these presumed rate cuts in advance. The CME FedWatch tool says there’s a 98% chance the Fed will cut its federal funds rate by 25 basis points at this meeting. And if the unemployment data released on the first Friday of the month is encouraging, that 98% chance could become a virtual certainty.

Inflation could continue to decline

Borrowers will need to wait for mid-November to get the next inflation reading, but if the one that comes out on November 13 is yet another encouraging one, it could lead to lenders preemptively lowering rates on borrowing products like HELOCs. After an uneven start to 2024, inflation has been consistently cooling in recent months. Another decline for October (reported in November) could be further proof to a “soft landing,” encouraging lenders to loosen up borrowing again via lower rates.

Learn more about today’s HELOC interest rates here.

The bottom line

HELOC interest rates are falling and are likely to fall again in November. With the next Federal Reserve meeting, unemployment report and inflation data all slated for a 13-day span in the first half of the month, there will be enough data to encourage lenders to again lower rates. That said, waiting for interest rates to fall is an inherently risky strategy, so if you know you need to borrow from your home and you want to do so with a HELOC, it makes sense to act now. Rates on these products will adjust independently each month anyway, so if rates fall after you’ve opened one, you’ll still be able to take advantage without having to refinance or take any additional action.