As economic conditions improve with cooling inflation, experts predict a decline in home equity loan and HELOC rates, driven by anticipated Federal Reserve interest rate cuts. Lending professionals forecast a potential 25-basis point cut in September, followed by another cut by December, which could make borrowing more attractive for homeowners looking to tap into their equity. Mortgage refinance activity is also expected to rise as mortgage rates are projected to gradually decrease, especially for homeowners currently burdened with higher rates. Despite these predictions, many homeowners with existing low rates are unlikely to refinance unless rates drop below 6%. Additionally, FHA loans are currently averaging around 6.14%, with varying rates compared to other government-backed loans like VA and USDA loans. While HELOC and home equity loan rates remain high, they offer a more affordable option than credit cards or personal loans, making them appealing for ongoing home projects or unexpected expenses.