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For millions of Americans, March is a time spent gathering tax documents, speaking to accountants and, finally, filing a tax return in the hope of receiving a refund. But this March could also be a smart time to reevaluate your borrowing options. With inflation now rising in four consecutive months, stock market uncertainty prominent and hopes of another interest rate cut delayed, many Americans may be looking for ways to make ends meet right now.
Fortunately, for homeowners, there’s a relatively simple and affordable way to do so via their home equity. With a home equity line of credit (HELOC), homeowners can gain access to the average $314,000 home equity amount in the form of a revolving line of credit. And this specific borrowing product is especially beneficial to pursue now, at the start of this March. Below, we’ll explain why.
See how much equity you could borrow with a HELOC here.
Why you should open a HELOC this March
Not sure if a HELOC makes sense for you now? Here are three reasons why it could be worth exploring this month:
Interest rates keep falling
HELOC rates were over 10% at the start of 2024 but consistently dropped for much of last year. And that downward trend continued in 2025, with HELOC rates falling to an 18-month low in January and a two-year low in February. Now averaging 8.12%, HELOC rates are more than a quarter of a percentage point lower than home equity loans, making them one of the least expensive ways to borrow home equity now. Considering that the home functions as collateral in these exchanges – and that borrowers could lose their home to the lender if they’re unable to make repayments – this affordability factor is particularly critical now.
See what HELOC interest rate you’d qualify for here.
Rates could fall again later this spring
HELOC rates are variable and will change each month for borrowers. That can be a distinct disadvantage when rates are being hiked but can be a plus this spring, as many still expect rate cuts for later this year. Right now, the CME Group’s FedWatch tool has a rate cut listed at a 43.9% chance for May. And since Federal Reserve policy greatly impacts HELOC rates, that means your line of credit could become even cheaper in May or early June. Still, a variable rate can rise just as quickly as it can fall, so this volatility will need to be priced in before completing the application process.
It’s one of the cheapest ways to borrow money now
HELOC rates are averaging 8.12% now. That’s lower than home equity loans (averaging 8.40%), personal loans (close to 13%) and credit cards (hovering near a record 23%). So while some alternatives may seem more attractive on paper, the reality is that this March, a HELOC offers borrowers one of the cheapest ways to borrow money right now. And because you’re doing so via your home equity, you may even qualify for tax benefits that simply aren’t available with alternative borrowing options, thus making this product even cheaper overall.
The bottom line
Any borrowing product that uses your home as collateral should be approached judiciously and strategically. That extends to getting the timing right. However, this March could be the right time to act with a HELOC. With a consistently declining average interest rate, the likelihood for that rate to fall even further and an affordability that alternative products simply cannot offer right now, many homeowners should consider opening a HELOC this March. By acting now, homeowners can better set themselves up for home equity borrowing success both in this month and in the months and years to come.
