By Linda Bell, Bankrate.comThe Federal Reserve just did something it hadn’t yet done in 2025: It lowered its benchmark overnight lending rate. In contrast, fixed-rate home equity loan rates are less sensitive to Fed moves, although new borrowers may see their rates gradually shift as well. Home equity rate relief impactAlthough rates may trend lower this year, the reality is that it will take some time for a drop in home equity rates to reach borrowers’ wallets. However, the timing of the Fed cuts at the end of the year could put a damper on those deals. Keeping an eye on the Fed’s moves can offer clues to where home equity rates may be headed.