Home equity moves to make without an April Fed meeting scheduled

Home equity loan interest rates are driven by multiple factors. One of the most prominent is the Federal Reserve, and the bank's interest rate and monetary policy, specifically. When rates are hiked, rates tend to rise for many borrowing products, arguably most noticeably in the home equity borrowing market. At the same time, when inflation is cooling, the Fed feels more comfortable cutting interest rates, as it did three times in the final four months of 2024. As a result, interest rates on home equity loans and home equity lines of credit (HELOCs) have steadily declined, with HELOCs, in particular, dropping to 18-month and two-year lows, respectively, just in the first three months of 2025.

But there's no Federal Reserve meeting scheduled for this April and the bank won't meet again until May 6 and May 7. Understanding this break in the calendar, then, prospective home equity borrowers should be strategic in their approach. Below, we'll detail three home equity moves homeowners should consider making, specifically without an April Fed meeting scheduled.

Start by seeing what home equity loan rate you'd currently be eligible for here.

Home equity moves to make without an April Fed meeting scheduled

Here are three smart home equity moves homeowners should consider making this April, minus a formal Fed meeting scheduled:

Take the time to shop around

In a month with a looming Fed meeting, borrowers will understandably feel compelled to act quickly, particularly if they're looking to lock in a low home equity loan rate (which is fixed). Waiting for the Fed to take rate action, or even hint at future rate action, could adversely impact what rates borrowers can secure. 

But with no meeting set for April, homeowners can take a deep breath and spend more time shopping around to find low rates and attractive terms. Remember that you don't need to use your current mortgage lender to secure a home equity loan or HELOC, so use the 30 days in April to shop around online to see what offers are available. You may be surprised at what you ultimately find when you can take the time to do your research and compare and contrast offers.

Start shopping for home equity loans and HELOCs online today.

Compare a fixed rate versus a variable one

A home equity loan has a fixed interest rate (which is generally advantageous), but home equity loan rates are higher than HELOCs now (which is not). At the same time, HELOC rates, despite a steady decline over the past six months, can rise as easily as they can drop. And that can happen even before the May Fed meeting if lenders assume that rates will remain higher for longer. That will be less of a concern with a home equity loan, whose rate will stay static unless refinanced. 

The good news is that you have some time to closely compare your fixed rate and variable rate options this April. Consider calculating your repayment costs over the common 10 and 15-year repayment periods to better determine both short and long-term affordability (and don't forget closing costs).

Determine your exact financing needs

You should never rush into securing home equity financing as your home functions as collateral in this scenario. Fail to make your home equity loan or HELOC monthly repayments and your home could be repossessed by the lender. One way to avoid this is by determining your exact financing needs, so you only borrow what you need and no more. 

And this should be simple to do this April with the threat of a Fed meeting, and, potentially, a significant interest rate impact, not such a timely concern. That said, be sure to still monitor the wider rate climate, particularly the next inflation report that's released on April 10, as that could impact what the Fed does in May – and what home equity lenders potentially do before then.

The bottom line

A break in the Federal Reserve meeting schedule, especially considering that the bank has left rates paused in its first two meetings of 2025, could be a welcome opportunity for homeowners considering borrowing from their home equity now. To take advantage this April, however, they should take the time to do their due diligence by shopping around for rates and lenders. They should also do the math and compare the pros and cons of a fixed home equity loan rate versus a variable HELOC one, all while precisely determining their exact financing needs. By using this April to do the hard work and research, borrowers can better improve their chances of home equity borrowing success both in May and in the months and years that follow.