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Will home equity loan rates rise after this week’s Fed meeting?
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Following a series of disappointing inflation reports to start 2024, the focus will be on the Federal Reserve this week as it meets again to determine the state of interest rates and other considerations. Already at a 22-year high with a benchmark rate stuck at a range between 5.25% and 5.50%, borrowers are eager for some relief. And while the Fed doesn’t directly dictate what rate lenders offer borrowers, its benchmark rate goes a long way toward influencing what rate lenders feel comfortable with.
Against today’s inflationary and high-interest rate backdrop, many homeowners have turned to their home equity. This cost-effective borrowing option comes with rates significantly lower than many popular alternatives and significantly more financing to tap into versus what’s available with credit cards or personal loans. But with the Fed set to announce their newest rate decision on Wednesday, many are wondering if home equity loan rates will also rise after this week’s meeting. That’s what we will break down below.
Don’t wait for rates to increase. See what home equity loan rate you could secure today here.
Will home equity loan rates rise after this week’s Fed meeting?
While no one knows with certainty what the Fed will decide this week, the chances of a rate cut, which many were optimistic about at the end of 2023, seem slim right now. There’s already been talk about tabling any rate cuts for the remainder of 2024 and the inflation report for March, which showed inflation increasing for the second month in a row, emphasized that rate cuts are unlikely to come anytime soon. But will they rise?
Most experts don’t expect the Fed to raise its benchmark rate this week. But that doesn’t necessarily mean that rates on home equity loans won’t increase slightly anyway. What Federal Reserve chairman Jerome Powell says after the meeting – as well as any implications that higher rates for longer are back on the table – could itself raise rates, even slightly. That’s because lenders will want to get ahead of any rate cuts to come.
So if those start looking more likely, rates on home equity loans and home equity lines of credit (HELOCs) could tick up as soon as this week, even in the absence of a formal rate rise courtesy of the Fed.
So, if you’re considering this unique, low-cost borrowing option it makes sense to act promptly. Get started online here.
How to get a lower home equity loan rate now
While today’s home equity loan rates are still in the single digits (8.63% for home equity loans, 9.10% for HELOCs), you may get an even lower rate by making a few strategic moves.
First, make sure that your credit is in the best shape possible. Lenders reserve the best rates and terms for borrowers with the highest credit scores and cleanest credit profiles so do your due diligence to make sure you’re an attractive borrower.
And take the time to shop around to compare lenders and the rates they’re offering. While you’re unlikely to find a dramatically lower rate from one lender to the next, every little bit helps, particularly when you’re repaying the loan over a decade or more.
Finally, don’t borrow more than you need. While the vast amount of home equity available can be tempting to tap into, you may wind up paying a higher rate to get it. And considering that your home is the collateral in these scenarios, it’s safer (and more cost-effective) to only borrow what you need and nothing more.
The bottom line
With interest rates elevated and the prospect of a slight increase to come this week, those considering accessing their home equity should strongly consider acting now. By doing so, they’ll improve their chances of securing a lower rate and, if they use a home equity loan, that rate will remain the same even if the Fed ultimately decides additional rate hikes are required in the months to come. As with all borrowing options, however, it’s critical to weigh the pros and cons of home equity loans against other options so that you can fully and safely take advantage of this unique loan type.
NEW YORK — Former New York Gov. David Paterson and his stepson were attacked in New York City on Friday night, authorities said.
The incident occurred just before 9 p.m. on Second Avenue near East 96th Street on the Upper East Side, according to the New York City Police Department.
Police said officers were sent to the scene after an assault was reported. When officers arrived, police say they found a 20-year-old man suffering from facial injuries and a 70-year-old man who had head pain. Both victims were taken to a local hospital in stable condition.
In a statement, a spokesperson for the former governor said the two were attacked while “taking a walk around the block near their home by some individuals that had a previous interaction with his stepson.”
The spokesperson said that they were injured “but were able to fight off their attackers.”
Both were taken to Cornell Hospital “as a precaution,” he added.
Police said no arrests have been made and the investigation is ongoing.
The 70-year-old Paterson, a Democrat, served as governor from 2008 to 2010, stepping into the post after the resignation of Eliot Spitzer following his prostitution scandal. He made history at the time as the state’s first-ever Black and legally blind governor.
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A 17-year-old boy was critically injured and a person is in custody after a gunman opened fire on a SEPTA bus in North Philadelphia Friday evening, police said.
At around 6:15 p.m., Philadelphia police were notified about a shooting on a SEPTA bus traveling on Allegheny Avenue near 3rd and 4th streets in North Philadelphia, Inspector D F Pace told CBS News Philadelphia.
There were an estimated 30 people on the bus at the time of the shooting, Pace said, but only the 17-year-old boy was believed to have been shot. Investigators said they believe it was a targeted attack on the teenager and that he was shot in the back of the bus at close range.
According to Pace, the SEPTA bus driver alerted a control center about the shooting, which then relayed the message to Philadelphia police, who responded to the scene shortly.
Officers arrived at the scene and found at least one spent shell casing and blood on the bus, but no shooting victim, Pace said. Investigators later discovered the 17-year-old had been taken to Temple University Hospital where he is said to be in critical condition, according to police.
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Through their preliminary investigation, police learned those involved in the SEPTA shooting may have fled in a silver-colored Kia.
Authorities then found a car matching the description of the Kia speeding in the area and a pursuit began, Pace said. Police got help from a PPD helicopter as they followed the Kia, which ended up crashing at 5th and Greenwood streets in East Mount Airy. Pace said the Kia crashed into a parked car.
The driver of the crashed car ran away but police were still able to take them into custody, Pace said.
Investigators believe there was a second person involved in the shooting who ran from the car before it crashed. Police said they believe this person escaped near Allegheny Avenue and 4th Street, leaving a coat behind.
According to Pace, police also found a gun and a group of spent shell casings believed to be involved in the shooting in the same area.
“It’s very possible that there may have been a shooting inside the bus and also shots fired from outside of the bus toward the bus,” Pace said, “We’re still trying to piece all that together at this time.”
This is an active investigation and police are reviewing surveillance footage from the SEPTA bus.