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What’s the home equity loan interest rate forecast for fall 2024?
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With inflation remaining higher than the Federal Reserve’s target rate and the costs of many goods and services rising, many consumers are looking to borrow cash to reduce financial strain or consolidate their high-rate debts with a lower-interest loan. But interest rates are high, too — at least for now.
That could change in the near future, though, as the Federal Reserve eyes a rate cut amid slowing inflation. Most analysts are now forecasting that the first Fed rate cut will occur at the September meeting. But how would a rate cut this fall help consumer borrowing rates — and, in particular, those on home equity loans and home equity lines of credit (HELOCs)?
Start comparing today’s top home equity borrowing rates now.
What’s the home equity loan interest rate forecast for fall 2024?
Here’s what experts say is on the horizon for home equity loan and HELOC rates this fall.
Home equity rates will drop
The general consensus is that home equity rates on both home equity loans and HELOCs are going to drop in fall 2024, as are mortgage rates across the board. Ultimately, though, it comes down to the Fed’s plans for rate cuts.
While the central bank has stopped short of saying exactly when it will reduce its federal funds rate (and by how much), Chairman Jerome Powell did say a rate cut is “on the table” for September. The CME Group FedWatch Tool also currently shows a 100% chance of that occurring.
Consumer borrowing rates typically follow the trajectory of the federal funds rate and the prime rate that’s tied to it. So when these rates fall, home equity borrowing rates typically drop as well.
“I anticipate a 0.25%, or maybe a .50% reduction in the prime rate by the end of the year,” says Bill Westrom, CEO of equity and debt management company Truth in Equity. “From an economic perspective — and eliminating any perceived political motivation, I believe a slight reduction would give us all a little boost — a little relief, without adding to inflation. However, there are so many variables associated with the decision, we really just have to wait and see what the Fed thinks is best.”
Right now, the FedWatch Tool shows about a 49% chance of a 25-basis-point reduction and a 51% chance of a 50-point one. Those projections tend to change often, though.
“I don’t believe there will be a significant reduction,” Westrom says. “With the economy in its current condition, I think we can expect the Fed to tread lightly with any rate adjustments.”
Find out what the best home equity borrowing rates are today.
Try and wait out borrowing
Unless there’s a pressing reason you need the funds from a home equity loan or HELOC right now, experts say you’re likely safe to wait it out.
“I don’t see the rush. Rates are trending down, and these products aren’t going anywhere,” says Debra Shultz, vice president of lending at CrossCountry Mortgage’s The Shultz Group. “The only risk to waiting would be a possible decline in the value of the home. The lower the
value, the less equity there would be to draw against.”
And while rates are expected to fall by the end of the year, the Fed isn’t expected to finish its rate cuts in 2024. Depending on where inflation goes, many more could follow — and that would mean lower home equity rates down the line, too.
“If interest rate is the deciding factor in taking out a new loan, then I would wait,” Westrom says. Interest rates will come down — they have to. When and by how much is the $64 million-dollar question. I don’t think we need to fear rates going up, so there really is no risk to waiting.”
Waiting might not be worth it in some cases
If you’re in need of cash more quickly and can’t afford to wait it out for rates to drop, then borrow now — as long as the numbers work for you.
“I would say a bird in the hand is worth two in the bush,” says John Aguirre, a mortgage broker at Loantown. “If you’re able to meet your goals with the current rate and repayment plans, then execute now and take any risk off the table.”
Westrom recommends considering a HELOC if you need cash sooner rather than later, as these are typically variable-rate products. That, in turn, will allow you to leverage lower rates should they drop later on.
“There is much more flexibility with a HELOC, and you get to ride the interest-rate-wave down as the economy improves — which it will,” Westrom says.
The bottom line
Whether you get a home equity loan or HELOC now or months down the line, always be sure to shop around for your loan and lender. Compare rates, fees, terms and repayment details, and make sure you’re getting the best product for your needs and budget. You can also work on improving your credit score, as this will help you qualify for the lowest interest rates.
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Georgia Powerball ticket hits $478 million jackpot for first winner in the state since 2016
Wednesday’s winning Powerball ticket was sold in Georgia at a convenience store — netting the lucky buyer a $478 million jackpot, the state lottery said.
Purchased at a Quick Mart in Buford, the six matching numbers earned the ticket holder the largest winnings in the state’s history, according to Georgia Lottery President and CEO Gretchen Corbin. The winning numbers for the Wednesday, Oct. 23, Powerball drawing were: 2, 15, 27, 29 and 39 and the Powerball was 20.
Powerball said on its website that 616,153 tickets sold nationwide won prizes in Wednesday night’s drawing. Two tickets, one sold in Pennsylvania and the other in Texas, matched all five white balls to win $1 million prizes.
The jackpot winner can take either the $478.2 million doled out in annual payments or a lump sum payment of $230.6 million, both before taxes. If the winner selects the annuity option, they will receive one immediate payment followed by 29 annual payments.
This was the first jackpot winner in the state since 2016, when couple William and Heather ten Broeke purchased a $246.8 million winning ticket. They opted to take the cash payout, which totaled $165,613,511 before taxes.
Where was the winning Powerball ticket sold in Georgia?
The winning ticket was sold at Quick Mart, located at 2155 Buford Dam Road in Buford, Georgia. Retailers who sell the jackpot-winning ticket earn a $50,000 retailer incentive bonus payment, the lottery said.
Powerball tickets are sold in 45 states. Utah, Nevada, Hawaii, Alaska and Alabama do not participate in the game for a mix of reasons, including objections from conservatives, concerns about the impact on low-income families and a desire not to compete with existing gaming operations. Tickets cost $2.
Players can either pick their numbers or let a computer randomly generate them. One expert told CBS News it’s better to use the random ticket number generators because those machines might better match what the Powerball drawing could do.
Even so, the chances of winning the jackpot are very slim. According to Powerball, the overall odds of winning a prize are 1 in 24.9, but the odds of winning the jackpot are 1 in 292.2 million.
To put that in context, a Powerball player is more likely to be attacked by a grizzly bear at Yellowstone National Park — about 1 in 2.7 million, according to the National Park Service — or find a blue lobster in the ocean (1 in 2 million).
Do we know who won the Powerball jackpot?
The Georgia lottery has not yet announced if the owner of the winning ticket has claimed their prize. Winners in Georgia have 180 days from the draw date to claim prizes. When the winner does come forward, we still may not know their identity, as people who win large jackpots in Georgia have the option to collect their winnings anonymously.
Once the winner claims their ticket, it will be the highest single payout in Georgia Lottery history, officials said. This jackpot surpasses the previous record held by a Mega Millions winner from Stone Mountain, who claimed half of a $648 million jackpot and was awarded a cash option of over $173 million, before taxes.
Where and when was the previous Powerball jackpot won?
The Powerball jackpot has been won eight times this year, with the most recent winning ticket prior to Wednesday’s drawing being sold in California on August 19, 2024, for a $44.3 million jackpot.
The largest payout in Powerball history was in California for a $2.04 billion prize in 2022. In 2016, three winners from California, Florida, and Tennessee split a $1.586 billion prize.
The other winners in 2024 were:
2024 Powerball Jackpots
- Jan. 1, 2024 – $842.4 million – Michigan
- April 6, 2024 – $1.326 billion – Oregon
- May 6, 2024 – $214.9 million – Florida
- June 10, 2024 – $226.6 million – New Jersey
- July 3, 2024 – $139.3 million – Ohio
- Aug. 12, 2024 – $213.8 million – Pennsylvania
- Aug. 19, 2024 – $44.3 million – California
contributed to this report.
A French bulldog died on an Alaska Airlines flight from New York to San Francisco earlier this year after the pet and its owner were moved from first class to coach just before takeoff, a lawsuit alleges.
The plaintiff, Michael Contillo, claims his nearly four-year-old French bulldog, Ash, died “as a direct and foreseeable consequence of the wrongful conduct” of the airline after he was moved to another part of the plane, according to the complaint.
Contillo had bought first-class seats for himself and his father on a February 2024 flight so that his two French bulldogs could board early and have more space, alleges the suit, which was filed in San Francisco County Superior Court on Oct. 16.
Along with purchasing tickets, Contillo had reserved space in first class for both dogs for an additional $100 each, according to the suit. He alleges that, although his dogs’ carriers complied with airline policies, just before the flight was set to prepare for take-off airline personnel asked him and his father to move from the fourth row in first class to a row in the main cabin “for safety purposes.”
Contillo protested, saying that moving the dogs would make them “very anxious,” leading to “extremely dangerous” breathing and heart problems, according to the complaint, which alleged that he told airline staff that the change could be lethal. The suit claims the pair’s new seats gave the dogs less space to breathe and that airline employees ignored their concerns.
Ash, the dog who died, “started breathing very quickly and heavily, with noticeable anxiety” just before takeoff, according to the lawsuit. The airline told Contillo that the dog’s carrier needed to be closed, and he complied with the request.
Contillo said he noticed Ash had stopped moving, but that he had to wait for the plane to ascend to a certain altitude before he could check on his pet. By the time Contillo disembarked in San Francisco, Ash was in rigor mortis, suggesting that he had died hours earlier, the suit claims.
“The entire flight crew, including the pilot, deboarded the plane and showed no sympathy for the plaintiff’s dog’s loss. No one stopped to show concern, offer condolences or show the slightest bit of compassion,” the lawsuit alleges.
Prior to the flight, Contillo had the two dogs evaluated, and both were determined fit to fly, the suit claims, noting that Ash was “a very healthy and active dog with no history of illness or surgeries.”
Contillo, who blames his dog’s death on the airline’s “unjustifiable” seat change, is suing Alaska Air for breach of contract, negligence, negligent hiring and supervision, and negligent infliction of emotional distress. He is seeking punitive damages to be determined at trial.
“Alaska Airlines employees should have known the requirements needed to avoid that happening,” the lawsuit states.
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