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Here’s the home equity loan interest rate forecast for October

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Homeowners considering accessing their home equity should calculate the costs before acting.

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Home equity loans have long been one of the more affordable ways for property owners to borrow and, unlike alternatives such as a home equity line of credit (HELOC), home equity loans typically offer borrowers a fixed interest rate and predictable payments. 

Unfortunately, home equity loan rates have soared in the post-pandemic era as the Federal Reserve raised the benchmark interest rate to fight inflation. While home equity loans and HELOCs remained cheaper than credit cards, borrowing costs hit the highest levels in years. 

The good news is, the tide may be turning. Driven by anticipation of a Fed rate cut, expert predictions of falling rates in the summer of 2024 proved accurate. With the latest inflation report showing just a 2.5% year-over-year increase in the all-goods index, the Fed rate cut announced in September and the Fed strongly signaling more cuts are coming, predictions of additional rate drops this fall have many owners hoping cheaper loan options will soon be on the table.

But, will rates drop in October or should homeowners hold on for further rate declines? We asked some experts where they think rates are trending. 

See how low of a home equity loan rate you could secure here.

Here’s the home equity loan interest rate forecast for October

Looking to access your home equity this month? Here’s what could happen to interest rates:

A rate reduction could be on the table

Homeowners eager to tap into their equity as soon as possible may have some new opportunities to borrow at a lower rate this October. 

“Home equity loan rates will be reduced by .50% in October,” predicts Melisa Cohn, Regional Vice President at William Raveis Mortgage. Cohn indicates that rates will drop because of the Federal Reserve’s recent rate cut at the September meeting. 

Borrowers who currently have home equity loans won’t see their costs decline, unlike those with variable-rate HELOCS that often move directly with the prime rate which is heavily influenced by the Fed. Although HELOC rates fluctuate over time, home equity loan rates are fixed. Anyone who already borrowed is locked in at the rate they were initially offered unless they refinance.

New home equity loan borrowers, however, could benefit from more affordable loan options coming on the market. The Fed’s benchmark rate is just one factor affecting how much banks charge homeowners looking to tap equity, but when it costs banks less to borrow, they often respond by lowering rates on home equity and other consumer loans. 

Start exploring your current home equity loan options online today.

Bigger rate cuts are coming

While loans should become more affordable in October, those who can hold on for a little longer may be rewarded for their patience. 

“I don’t think we’ll see much change in home equity rates in October; however, pretty sizable drops are coming,” predicts Aaron Gordon, Branch Manager and Senior Mortgage Loan officer at Guild Mortgage. “The Fed dropped rates 50 basis points in September so that was great news for home equity loans but the next Fed meeting isn’t until early November. With inflation getting closer to the Fed’s 2% stated target, I believe we’ll see steady drops over the next year.”

Ralph DiBugnara, President of Home Qualified, also believes rate drops are imminent but not necessarily immediate, although he predicts the rate decline will start in October. “With overall mortgage rates coming down because the Fed has started lowering the borrowing rate, home equity loan rates will come down as well,” he says. “This reduction should happen over the fourth quarter of 2024 and into 2025.”

DiBugnara explained that reduced consumer spending, higher unemployment rates and high levels of consumer debt will prompt the Fed to continue rate cuts, which will lead to further reductions in home equity loan costs for property owners. 

The bottom line

Of course, not everyone can delay their borrowing date indefinitely if they have pressing financial needs now and those looking for home equity loans in October should still see some good opportunities out there. The key will be finding them. 

“It’s important to shop home equity rates as there may be a pretty big difference between your favorite bank or credit union and other lenders,” Gordon says. By exploring multiple loan offers and comparing rates and fees, borrowers who need to tap their equity can find the best deals in the current market — while homeowners who aren’t on the clock can sit back and wait for even better offers in November and beyond.



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The U.S. helped intercept missiles launched toward Israel by Iran, a defense official tells CBS News. Charlie D’Agata has more on U.S. involvement in the Middle East.

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Iran confirmed it launched an attack toward Israel Tuesday as Israel’s operations against Hezbollah in Lebanon escalate. Retired Lieutenant General H.R. McMaster, a former national security adviser, joins CBS News with his take on U.S. response to Iran’s latest escalation in the region.

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Claudia Sheinbaum takes office as Mexico’s first female president

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Claudia Sheinbaum took office Tuesday as Mexico’s first female president in the nation’s more than 200 years of independence.

The 62-year-old former Mexico City mayor and lifelong leftist campaigned on a promise of continuity and of protecting and expanding the signature initiatives of her mentor, former President Andrés Manuel López Obrador.

In the four months between her election and inauguration she held that line, backing López Obrador on issues big and small. But Sheinbaum is a very different person; she likes data and doesn’t have López Obrador’s backslapping personal touch.

Mexico now waits to see if she will step out of his shadow.

Claudia Sheinbaum Takes Office As President Of Mexico
Claudia Sheinbaum takes office as the first female president of Mexico following an overwhelming victory in the presidential election.

Manuel Velasquez / Getty Images


Sheinbaum’s background is in science. She has a Ph.D. in energy engineering. Her brother is a physicist. In a 2023 interview with The Associated Press, Sheinbaum said, “I believe in science.”

Observers say that grounding showed itself in Sheinbaum’s actions as mayor during the COVID-19 pandemic, when her city of some 9 million people took a different approach from what López Obrador espoused at the national level.
Sheinbaum set limits on businesses’ hours and capacity when the virus was rapidly spreading and expanded its testing regimen. She also publicly wore masks and urged social distancing. 

She comes from an older, more solidly left tradition that predates López Obrador’s nationalistic, populist movement.

Colombia’s President, Gustavo Petro, dropped a bit of a bombshell before Sheinbaum’s inauguration, telling reporters she had been a sympathizer of Colombia’s leftist guerrilla group, M-19 – the group that Petro himself once belonged to – and that she helped out exiled rebel fighters when they passed through Mexico. “A lot of Mexicans came to help us, and among them was Claudia.”

While Sheinbaum’s office did not immediately respond to queries about Petro’s comments, the idea is not improbable: Sheinbaum comes from a far more traditionally ‘leftist’ background than López Obrador, and has herself said she belonged to a number of leftist youth groups during her university years, at a time when they would have supported rebel groups in Central America and South America.

Her parents were leading activists in Mexico’s 1968 student movement, which ended tragically in a government massacre of hundreds of student demonstrators in Mexico City’s Tlatelolco plaza just days before the Summer Olympics opened there that year.

Sheinbaum is also the first president with a Jewish background in the largely Catholic country.

Sheinbaum led wire to wire and won convincingly in June with almost 60% of the vote, about double the number of her nearest competitor, Xóchitl Gálvez.

As López Obrador’s chosen successor, she enjoyed the boost of the high popularity he maintained throughout his six years in office.

The opposition’s coalition led by Gálvez struggled to gain traction, while support for the governing party carried over to Congress, where voters gave Morena and its allies margins that allowed it to pass important constitutional changes before López Obrador left office.

Before passage of a controversial constitutional overhaul of Mexico’s judiciary that will make all judges stand for election, Sheinbaum stood with López Obrador who had pushed it.

Inauguration of the first female president of Mexico
Women raise their fists and cheer in Congress during the inauguration of Sheinbaum as the new president of Mexico. For the first time in the country’s history, a woman is at the helm of the Latin American state. 

Felix Marquez/picture alliance via Getty Images


Sheinbaum said “the reforms to the judicial system will not affect our commercial relations, nor private Mexican investments, nor foreign ones. Rather the opposite, there will be a greater and better rule of law and democracy for everyone.”

Shortly after, when López Obrador’s proposal to put the National Guard under military command was being considered, Sheinbaum defended it against critics. She said it would not militarize the country and that the National Guard would respect human rights.

And just days before she took office, Sheinbaum stood with López Obrador in his long-running diplomatic spat with Spain. She defended her decision to not invite Spain’s King Felipe VI to her inauguration, saying in part that the king had failed to apologize for Spain’s conquest of Mexico as López Obrador had demanded years earlier.

Sheinbaum’s victory came 70 years after women won the right to vote in Mexico.

The race really came down to two women, Sheinbaum and Gálvez, but Mexico’s prevailing machismo still pushed both women to explain why they thought they could be president.

Since 2018, Mexico’s Congress has had a 50-50 gender split, in part due to gender quotas set for party candidates. Still, Sheinbaum inherits a country with soaring levels of violence against women. Barely 24 hours after Sheinbaum’s election victory, the female mayor of a town in western Mexico, Yolanda Sanchez Figueroa, was gunned down on a public road, according to local media. The Michoacan attorney general’s office said that the mayor’s bodyguard was also killed. 

There are also still many parts of the country, especially rural Indigenous areas where men hold all the power. And some 2.5 million women toil in domestic work where despite reforms they continue to face low pay, abuse by employers, long hours and unstable working conditions.

Mexico’s Supreme Court ruled in 2023 that national laws prohibiting abortions are unconstitutional and violate women’s rights.

Although the Mexican ruling orders the removal of abortion from the federal penal code and requires federal health institutions to offer the procedure to anyone who requests it, further state-by-state legal work is pending to remove all penalties.

Feminists say that simply electing a woman as president does not guarantee she will govern with a gender perspective. Both Sheinbaum and López Obrador have been criticized before for appearing to lack empathy toward women protesting against gender violence.



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