CBS News
Mortgage rates are still falling. Here are 5 big moves to make now
The past couple of years have been tough for homebuyers. Just a few years ago, it was easy to find a mortgage loan with a 3% (or lower) rate, but as buyers rushed to take advantage of the cheap borrowing environment, it fueled an uptick in demand and drove up home prices. As the mortgage rate environment shifted post-pandemic, mortgage rates climbed, significantly reducing affordability and pushing many prospective buyers to the sidelines.
It appears that there’s finally a glimmer of hope on the horizon, though. In recent weeks, mortgage rates have shown a promising downward trend. Right now, the average mortgage rate is below the 7% threshold, with 15-year mortgages averaging 6.41% and 30-year mortgages averaging 6.92% (as of July 15, 2024). This offers a welcome reprieve for potential homebuyers, even in today’s tight housing market, where inventory remains limited.
But while this shift in the mortgage landscape is positive news, navigating the homebuying process in the current market still requires careful planning and strategic moves.
Find out the best mortgage rates available to you now.
Mortgage rates are still falling. Here are 5 big moves to make now
For those looking to take advantage of the cooling mortgage rate environment, here are some key steps to consider:
Get preapproved for a mortgage loan
One of the most crucial steps to take in today’s competitive housing market is to get preapproved for a mortgage loan. This process involves a lender reviewing your financial information, including income, assets and credit history, to determine how much they’re willing to lend you. A preapproval letter not only gives you a clear idea of your budget but also demonstrates to sellers that you’re a serious and qualified buyer.
In a market where multiple offers are still common, having a preapproval can set you apart from other potential buyers. It shows sellers that you’ve already taken steps to secure financing, which can make your offer more attractive. And, the preapproval process can help you identify and address any potential issues with your credit or financial situation before making offers.
Compare your top mortgage loan offers online now.
Lock in the best rate you can find
With mortgage rates on a downward trend, this is an opportune time to lock in a favorable rate. A rate lock guarantees that the interest rate quoted by your lender will remain available to you for a specified period, which typically spans from 30 to 60 days. This can protect you from potential rate increases while you complete the homebuying process.
But don’t just lock in the first rate you’re offered. Shopping around and comparing offers from multiple lenders is crucial during the process. And, don’t hesitate to negotiate with lenders, as even a small difference in your interest rate can translate to significant savings over the life of your loan.
Consider buying points to lower your rate further
If you have some extra cash on hand and want to ensure that you’re getting the best mortgage rate possible, buying mortgage points could be a smart move in the current environment. Mortgage points, also known as discount points, are essentially prepaid interest that you can purchase upfront to lower your interest rate for the life of the loan. While it can vary, each point typically costs 1% of your loan amount and can lower your rate by about 0.25%.
Rates are still relatively high by historical standards, so buying points could provide substantial long-term savings if you plan to stay in the home for an extended period. However, it’s important to calculate the break-even point to ensure this strategy makes financial sense for your situation.
Act fast on desirable properties
While the cooling of mortgage rates is a positive development, it’s important to remember that the housing market remains competitive due to limited inventory in most markets. And, as rates continue to drop, more buyers who were previously priced out of the market may re-enter, potentially intensifying competition for available homes.
If you find a property that meets your needs and fits your budget, be prepared to act quickly. Have your finances in order, your preapproval in hand and be ready to make a competitive offer. That way, you can set yourself up for success.
Explore alternative loan options
While conventional 30-year fixed-rate mortgages are the most common, don’t overlook other loan options that might be more suitable for your situation. For example, adjustable-rate mortgages (ARMs) typically offer lower initial rates than fixed-rate mortgages. And, in a falling rate environment, an ARM could potentially save you money in the short term, with the option to refinance to a fixed-rate mortgage if rates continue to decline.
The bottom line
As mortgage rates continue to cool, it offers a window of opportunity for prospective homebuyers who have been waiting on the sidelines. And, by taking proactive steps such as securing a preapproval, locking in competitive rates, considering points purchases, acting decisively on desirable properties and exploring various loan options, you may be able to position yourself for success in today’s evolving housing market. While challenges remain, particularly in terms of inventory and overall affordability, the improving rate environment could make it easier to turn your homeownership dreams into reality.
CBS News
1 monkey recovered safely, 42 others still remain on the run from South Carolina lab
One of 43 monkeys bred for medical research that escaped a compound in South Carolina has been recovered unharmed, officials said Saturday.
Many of the others are still located a few yards from the property, jumping back and forth over the facility’s fence, police said in a statement.
The Rhesus macaques made a break for it Wednesday after an employee at the Alpha Genesis facility in Yemassee didn’t fully lock a door as she fed and checked on them, officials said.
The monkeys on Friday were exploring the outer fence of the Alpha Genesis compound and were cooing at the monkeys inside. The primates continued to interact with their companions inside the facility on Saturday, which is a positive sign, the police statement said.
Alpha Genesis CEO Greg Westergaard relayed that efforts to recover all the animals will persist throughout the weekend and for as long as it takes, the statement said.
Westergaard told CBS News on Thursday that a caretaker inadvertently failed to secure a door at the enclosure, allowing the monkeys to roam free.
“It’s really like follow-the-leader. You see one go and the others go,” he said. “It was a group of 50 and 7 stayed behind and 43 bolted out the door.”
Westergaard acknowledged that it would be a long process to get them back and that they didn’t want to chase the monkeys because that would spook them and make them run away.
“We’ve got them very close,” he told CBS News. “This is all like what we want to see.”
The monkeys are about the size of a cat. They are all females weighing about 7 pounds.
Alpha Genesis, federal health officials and police all said the monkeys pose no risk to public health. The facility breeds the monkeys to sell to medical and other researchers.
Alpha Genesis provides primates for research worldwide at its compound in Yemassee, about 50 miles (80 kilometers) northeast of Savannah, Georgia, according to its website.
CBS News
American nurse killed in Budapest while on vacation, Hungarian police arrest suspect
A 31-year-old American tourist was killed while on vacation in Hungary’s capital, and the suspect, a 37-year-old Irish man, has been arrested, Hungarian police said Saturday.
The victim, Mackenzie Michalski was reported missing on Nov. 5 after she was last seen at a nightclub in central Budapest.
A Facebook group called “Find Mackenzie Michalski,” created on November 7, said Michalski, went by “Kenzie.” The group confirmed her death in a statement on Friday, thanking U.S. and Hungarian authorities for “their prompt attention, diligence, care, and consideration.”
Police launched a missing person investigation and reviewed security footage from local nightclubs where they observed Michalski with a man later identified as the suspect in several of the clubs the night of her disappearance.
Police detained the man, an Irish citizen, on the evening of Nov. 7. Investigators said that Michalski and the suspect met at a nightclub and danced before leaving for the man’s rented apartment. The man killed Michalski while they were engaged in an “intimate encounter,” police said.
The suspect, whom police identified by the initials L.T.M., later confessed to the killing but said it had been an accident. Police said that he had attempted to cover up his crime by cleaning the apartment and hiding Michalski’s body in a wardrobe before purchasing a suitcase and placing her body inside.
He then rented a car and drove to Lake Balaton, around 90 miles southwest of Budapest, where he disposed of the body in a wooden area outside the town of Szigliget.
Video released by police showed the suspect guiding authorities to the location where he had left the body. Police said the suspect had made internet searches before being apprehended on how to dispose of a body, police procedures in missing person cases, whether pigs really eat dead bodies and the presence of wild boars in the Lake Balaton area.
He also made an internet search inquiring about the competence of Budapest police.
Michalski’s parents are currently in Budapest, police told The Associated Press.
Friends posted condolences on the Facebook group of candles. Michalski was a nurse practitioner, the social media post said, who used “her humor, positivity, and limitless empathy to help heal her patients and encourage family and friends alike.”
CBS News
Severe droughts threaten sustainable catch of the Amazon’s giant fish, the giant pirarucu
Two years of record-breaking drought have dealt a heavy blow to what is arguably the Amazon’s most successful sustainable economy: the managed fishery for the giant pirarucu.
In Brazil´s Amazonas state, almost 6,000 riverine dwellers authorized to fish have reported a sharp drop in production and rising costs. They are demanding aid from the federal government and debating how to adapt to climate change.
Last year’s catch totaled 70% of the government-authorized quota of 100,443 fish. This year could see an even steeper decline, since many communities still haven´t been able to fish. The season runs from June 1 to Nov. 30.
Pirarucu managed fishing began in the Amazon 25 years ago in the Mamiraua region and has since expanded. It helped the Amazon’s largest fish escape risk of extinction and is now an important source of income for locals in 10 sustainable conservation units and eight Indigenous territories, where deforestation is close to zero.
Unlike other aquatic species of the Amazon, such as river dolphins, the pirarucu — also known as arapaima — historically have proven resilient to drought and climate change. But low water levels are making it extremely difficult for fishers to transport their catch from remote lakes to major rivers and onto cities.
It’s a mammoth task. The pirarucu, which can weigh up to 200 kilograms (440 pounds), lives in large lakes that during flood season are often connected to major rivers. Fishing typically occurs when water levels begin to recede, making it easier to trap the fish and transport them out in small boats or canoes. In several areas, however, water levels dropped so quickly that this connection was cut off before fishing could begin.
In the São Raimundo community in the Medio Jurua region, fishing is scheduled to start Saturday, a two-month delay — a common situation this season. As a result, Coletivo Pirarucu, an umbrella organization that represents 2,500 riverine and Indigenous families, has requested that the federal government extend fishing season until the end of January.
Even in large rivers navigation has become problematic, raising costs and uncertainty among fishermen. It usually takes three to four days to transport fish from Carauari municipality — a major pirarucu producer — to Manaus, the Amazon´s largest city. During the peak of the drought, the trip increased to 10 days, and the freight price has doubled.
Tough as pirarucu are, they are not immune to climate change, according to researcher Adalberto Luis Val from the National Institute for Amazonian Research. He says rising temperatures and severe droughts are exacerbating the “death trio” for all fish: warmer water, more CO2 and less oxygen.
The pirarucu has evolved to breathe air but is far from invincible.
“No fish can regulate body temperature,” Val said. “Then there’s water scarcity. As its level drops, you start to get a high amount of suspended material, leading to sludge buildup. It sticks to the gill area, blocking the processes that occur there.”
Fearing deteriorating conditions in the following decades, Coletivo Pirarucu contends that the fishermen should be entitled to compensation for losses caused by climate change. “This crisis not only challenges the resilience of communities but also highlights the urgent need for climate change adaptation and mitigation strategies,” the nonprofit stated in an open letter last week.
In an e-mail response, James Bessa, a federal official overseeing pirarucu management, said that Ibama, Brazil´s environmental agency, is working with other public bodies and local fishing associations to reduce the impact of extreme events like droughts and floods. He said there are plans to start scientific studies and closer monitoring to provide insights into ways to support riverine and Indigenous communities in sustaining their fishing activities.
Adevaldo Dias — a riverine leader who presides over the Chico Mendes Memorial, a nonprofit that assists traditional non-Indigenous communities — argues that adopting additional public policies to help the fishermen is a matter of climate justice.
“The Indigenous and riverine peoples have minimal impact on the environment,” Dias said. “We know that conserving the forest benefits both us and those outside it. And when extreme climate events occur, they are the most vulnerable.”