When do adjustable HELOC rates go down?

[Spencer Elliott]

I acquired a HELOC last year at 5% and it's currently 10.5%. It was quick to increase, but wouldn't it fall just the same? Looking online, responses say it adjusts every 6 weeks or so. it has never reduced so far. Is it time to buy it out with another bank? TIA

[Doug Smith]

HELOCs are usually tied to the Wall Street Journal Published Prime Rate (some are tied to SOFR). Prime is directly tied to the Federal Funds rate which is arbitrarily set by the Fed. With inflation pacing higher than expected and with the Fed obsessed with a silly and arbitrary 2% number for inflation, don't hold your breath on significant drops for a bit. The media and many real estate brokerages keep touting "rates are coming down". I don't see the economic indicators that lead me to believe the Fed is going to drop rates any time soon in a significant way.