Quick answer
The prime rate is the base lending rate posted by most large US banks; the Federal Reserve publishes it as the rate posted by a majority of the top 25 insured US-chartered commercial banks. It is 7% now, and many home equity lines of credit use it as the index for their variable rate.
Key facts
7.24%
30-year fixed mortgage average, for comparison
Freddie Mac Primary Mortgage Market Survey · Week of Oct 29, 2026
How prime moves
Banks generally change prime when the Federal Reserve changes its target for the federal funds rate, so it moves in steps rather than daily. Fixed mortgage rates don’t follow it directly: they track longer-term bond markets, which is why this week’s 30-year mortgage average of 7.24% can move while prime stands still, or the reverse.
Prime and your HELOC
A HELOC rate is usually an index plus a margin, and the CFPB names the US prime rate as a common index. With an illustrative margin of 1 percentage point, the rate today would be 8.00%, and interest-only payments during the draw period on a $50,000 balance would be $333 a month. If prime rose by half a point, that payment would become $354. Your margin stays fixed; the index is what moves, within any rate caps in your agreement. Model your own line with the HELOC payment calculator.
Sources
- Federal Reserve H.15 — Bank prime loan rate (Oct 28, 2026)
- Freddie Mac Primary Mortgage Market Survey — 30-year fixed rate, national weekly average (Week of Oct 29, 2026)
- CFPB: What you should know about home equity lines of credit (brochure)
Last reviewed Figures are checked against the sources above. Read our editorial policy. This page is general information, not financial advice — see the disclaimer.