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HELOC interest rates are falling. Here’s how much further they can drop this November.
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If you have been looking for an inexpensive way to borrow money in recent years and have been put off by the high interest rates associated with credit cards and personal loans, you may have considered using your home equity. Now, with the first cut to the federal funds rate issued in September after more than four years, and another anticipated for when the Federal Reserve meets again this week, home equity borrowing could become even cheaper.
This dynamic is already being felt with home equity lines of credit (HELOCs). Rates on this product, which works like a revolving line of credit, dropped to an average of 8.68% last week, the lowest they’ve been all year. Borrowers considering this particular product, then, may be wondering about the potential for HELOC rates to fall even further this November. Below, we’ll break down what to expect – and what to do about it.
Start by seeing what HELOC rate you could qualify for here.
How much further could HELOC rates drop this November?
While it’s impossible to determine with certainty how much further HELOC rates could drop this November, it’s not hard to see rates on this product falling by approximately 25 basis points. That is, after all, what most experts expect the Federal Reserve to cut the federal funds rate by this week. And while HELOC rates are unlikely to move directly in response, they will follow a similar downward trend. That noted, some lenders start pricing in these presumed rate reductions in advance of a formal issuing from the Fed. So what you see offered at the start of the month may not be materially different from what’s offered later in November.
Another factor to consider is that the October unemployment report was subpar, showing an addition of just 12,000 jobs in the month. If the Fed uses that as a motivator to reduce its federal funds rate, a reduction of another 50 basis points could be possible, at which point HELOC rates would also follow. A 25 basis point reduction, in other words, may already be priced in, but a bigger-than-expected cut to the rate this week could lead to a similar drop in HELOC rates.
But the good news is that borrowers don’t have to wait for these cuts to act. That’s because rates on HELOCs are variable and adjust independently each month with no action required on behalf of the borrower. So if the HELOC rate you secure right now is 8.68%, don’t be surprised if you see it drop to 8.43% or even lower in December.
Get started with a HELOC online today.
What about home equity loan rates?
Home equity loan interest rates won’t be immune from a downward trend and are also likely to fall as additional rate reductions are issued (and they’re already lower than HELOCs at just 8.35%). The issue with home equity loan rates right now, however, is that they’re fixed. That’s an advantage when rates are on the rise but problematic when they’re on the decline as they appear to be right now.
With a home equity loan, you’ll need to refinance to lock in the lower, prevailing rate while HELOCs will just fall to the new one on their own. So carefully calculate the benefits of a slightly lower home equity loan rate now versus the long-term benefits of a variable HELOC rate to better determine which is right for you.
The bottom line
HELOC interest rates are low and likely to become lower this month. So start shopping around for lenders to find one offering the best rates and terms. Get your paperwork in order so you’re best prepared to act when you find a lender you want to work with. Since you don’t need to wait for rates on HELOCs to fall it makes sense to open one now and position yourself to enjoy additional savings in the months to come. Just remember that your home serves as collateral in these borrowing exchanges so be cautious with how much you ultimately utilize as you could risk your homeownership if you fail to repay the principal and interest in full.
U.S. and European law enforcement agencies are working together to investigate whether incendiary devices detonated in July at DHL logistics hubs in Germany and the U.K. were part of a larger operation directed by Russian Intelligence services (in particular, the GRU — Russian military intelligence), the highest level of the Russian government or by outside individuals acting in the interests of Russia, a source familiar with the matter said.
Officials are working to determine whether the larger operation was to place similar devices on aircraft servicing the U.S. and U.S. allies. The Wall Street Journal first reported the alleged plot targeting U.S. aircraft.
The 2025 Homeland Threat Assessment published at the end of October said the U.S. continues to be concerned about threats to the aviation and air cargo systems, including the “potential use of the air cargo supply chain to ship concealed dangerous and potentially deadly items.”
DHL said in a statement that it was aware “of two recent incidents involving shipments in our network. We are fully cooperating with the relevant authorities to protect our people, our network and our customers’ shipments.”
“We continually adjust our security posture as appropriate and promptly share any and all relevant information with our industry partners, to include requirements and recommendations that help them reduce risk,” the Transportation Security Administration said in a statement.
“Over the past several months, as part of a multi-layered security approach, TSA worked with industry partners to put additional security measures for U.S. aircraft operators and foreign air carriers regarding certain cargo shipments bound for the United States, in line with the 2021 TSA Air Cargo Security Roadmap,” the TSA’s statement continued.
The FBI declined to comment.
contributed to this report.
Boeing’s 33,000 unionized machinists on Wednesday voted to approve the plane manufacturer’s latest contract offer, ending a seven-week strike that had halted production of most of the company’s passenger planes.
The union said 59% voted to accept the contract. Members have the option of returning to work as soon as Wednesday, but must be back at work by Tuesday, November 12, the union said in a statement.
Union leaders had strongly urged members to ratify the latest proposal, which would boost wages by 38% over the four-year life of the contract, up from a proposed increase of 35% that members of the International Association of Machinists and Aerospace Workers (IAM) had rejected last month.
The revised deal also provides a $12,000 cash bonus to hourly workers and increased contributions to retirement savings plans. The enhanced offer doesn’t address a key sticking point in the contentious talks — restoration of pensions — but Boeing would raise its contributions to employee 401K plans.
Average annual pay for machinists, now $75,608, would climb to $119,309 in four years under the current offer, Boeing said.
The vote came after IAM members in September and October rejected lesser offers by the Seattle-based aerospace giant.
“In every negotiation and strike, there is a point where we have extracted everything we can in bargaining and by withholding our labor,” the International Association of Machinists and Aerospace Workers stated last week in backing Boeing’s revised offer. “We are at that point now and risk a regressive or lesser offer in the future.”
Acting U.S. Labor Secretary Julie Su has played an active role in the negotiations, after recently helping to end a days-long walkout that briefly closed East and Gulf Coast ports.
The Boeing strike that began on Sept. 13 marked the latest setback for the manufacturing giant, which has been the focus of multiple federal probes after a door plug blew off a 737 Max plane during an Alaska Airlines flight in January. The incident revived concerns about the safety of the aircraft after two crashed within five months in 2018 and 2019, killing 346 people.
Boeing in July agreed to plead guilty to conspiracy to commit fraud for deceiving regulators who approved the 737 Max.
During the strike, Boeing was unable to produce any new 737 aircraft, which are made at the company’s assembly plants in the Seattle area. One major Boeing jet, the 787 Dreamliner, is manufactured at a nonunion factory in South Carolina.
The company last month reported a third-quarter loss of $6.1 billion.
contributed to this report.
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