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What’s the home equity loan interest rate forecast for November 2024?
High interest rates have made it hard for consumers to borrow money in recent years. And credit card rates? Those have been even worse. Fortunately, the tides have finally started to turn, and borrowing has recently become more affordable again.
Home equity interest rates, for example, have seen a notable dip over the last month or so, giving homeowners an opportunity to turn their home equity into cash without breaking the bank. Will those rates continue to cool, though, and is now a good time for you to borrow from your equity? Below, we’ll break down what some experts are predicting for this November.
Start by seeing how low of a home equity loan rate you could qualify for here.
What’s the home equity loan interest rate forecast for November 2024?
Home equity loans and home equity lines of credit (HELOCs) are the two main ways to borrow from your home equity. But the two aren’t one and the same.
While home equity loans are fixed-rate products offering a lump sum of cash, HELOCs are lines of credit you can pull from over time. They also typically have variable interest rates that fluctuate. For this reason, rates on these two products don’t follow the same trendlines.
HELOC rates are tied to the prime rate, which is based on the federal funds rate set by the Federal Reserve.
“The main driver of rates for these instruments will be movements by the Fed,” says Kevin Leibowitz, a mortgage broker at Grayton Mortgage. “If and when the Fed continues to cut rates, the rates on these mortgages will fall.”
As of now, the CME Group’s FedWatch Tool shows high chances of a Fed rate cut at both of the bank’s remaining 2024 meetings. This would likely mean a notable reduction in HELOC rates as well — both newly issued ones and existing ones (since HELOC rates typically adjust monthly).
Get started with a HELOC online now.
Long-term rates could be different
Home equity loan rates, however, aren’t directly tied to the prime or Fed rate. Though the Fed’s moves do trickle down to these and other long-term mortgage rates, the effect isn’t direct or immediate. So on these loans, the forecast isn’t as clear. Often, rates on these products will drop before the Fed makes any moves — in anticipation of them — rather than after they occur.
That’s what happened in August when experts largely predicted the Fed would adjust its policy at the upcoming September meeting. During that time, rates fell from nearly 7% to the low 6% range, only to rise back up once the Fed made its announcement.
“For a fixed equity loan, the trend follows what traditional purchase rates are doing,” says Rose Krieger, a senior home loan specialist at Churchill Mortgage. According to a forecast from the Mortgage Bankers Association, those are expected to fall slightly to 6.2% (down from today’s 6.5%), by year’s end.
Keep in mind that home equity loan rates are typically a few points higher than traditional mortgage rates, since they come with more risk for the lender. In late October, the average rate on a home equity loan was about 8.35% — a little less than two points over the 30-year mortgage rate, according to Freddie Mac.
Act now to be safe
Some experts estimate that home equity rates will generally drop by anywhere from 0.25% to 0.50% over the next few months, though economic data, the election and other factors could throw that off, he says.
Is it worth waiting around to see if those drops come to fruition, though? Likely not, experts say.
“I generally coach my clients to act on a needs basis,” Leibowitz says. “If they need to do something now, then do it. Waiting for lower rates is dangerous.”
The best thing you can do is to proceed with a home equity loan or HELOC when the numbers work for you. If you can get a rate and payment that are within your budget, and you’re able to achieve the financial goals you’re looking to tackle, then it’s probably time to make your move.
“Most long-term projections will show that whether you decide to invest on the ‘worst possible’ day to enter a market or the ‘best possible’ day to enter a market, the long-term outcomes tend to be fairly close over a long time period,” says John Aguirre, a mortgage originator at Loantown. “Given the recent trend of interest rates, moving quicker is better than later. We are hovering around the best interest rates in the past two years, and the chances that we break through to even lower rates is a risky proposition.”
Start exploring your home equity loan options online today.
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Sen. Tammy Duckworth says Pete Hegseth is “flat-out wrong” about women in combat roles
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Sen. Duckworth says Trump defense secretary pick is “flat-out wrong” about women in combat roles
Democratic Sen. Tammy Duckworth said Sunday that Pete Hegseth, President-elect Donald Trump’s pick for defense secretary is “flat-out wrong” in his view that women should not serve in the military in combat roles.
“Our military could not go to war without the women who wear this uniform,” Duckworth said on “Face the Nation with Margaret Brennan.” “And frankly, America’s daughters are just as capable of defending liberty and freedom as her sons.”
Trump tapped Hegseth, a former Fox News host and Army veteran who served in Iraq and Afghanistan as his pick to head the Defense Department earlier this month. The 44-year-old has drawn criticism for his stance on women in combat roles, along with his level of experience.
Duckworth, who in 2004 deployed to Iraq as a Blackhawk helicopter pilot and sustained severe injuries when her helicopter was hit by an RPG, outlined that women who serve in combat roles have met the same standards as men, passing rigorous testing. She said Hegseth’s position “just shows his lack of understanding of where our military is,” while arguing that he’s “inordinately unqualified for the position.”
“Our military could not go to war without the 220,000-plus women who serve in uniform,” Duckworth said. She added that having women in the military “does make us more effective, does make us more lethal.”
Hegseth has also drawn scrutiny amid recently unearthed details about an investigation into an alleged sexual assault in 2017. Hegseth denies the allegation and characterized the incident as a consensual encounter. The Monterey County district attorney’s office declined to file charges as none were “supported by proof beyond a reasonable doubt.” His lawyer has acknowledged that Hegseth paid a confidential financial settlement to the woman out of concern that the allegation would jeopardize his employment.
Duckworth, an Illinois Democrat who serves on the Armed Services and Foreign Relations Committees, said it’s “really troubling” that Trump would nominate someone who “has admitted that he’s paid off a victim who has claimed rape allegations against him.”
“This is not the kind of person you want to lead the Department of Defense,” she added.
The comments come after Trump announced a slew of picks for top posts in his administration in recent days. Meanwhile, one pick — former Rep. Matt Gaetz for attorney general — has already withdrawn his name from consideration after he faced intense scrutiny amid a House Ethics Committee investigation and a tenuous path to Senate confirmation.
While Duckworth acknowledged that she’s glad her Senate Republicans “held the line” on Gaetz and also elected Sen. John Thune as leader over a candidate favored by many in Trump’s orbit, she said she’s “deeply concerned” her Republican colleagues will green light Trump’s nominees.
“From what I’m hearing from my Republican colleagues on everything from defense secretary to other posts, it sounds like they are ready to roll over for Mr. Trump,” Duckworth said.
But Duckworth didn’t rule out supporting some of the nominees herself during the Senate confirmation process, pledged to evaluate each candidate based on their ability to do the job, and their willingness to put the needs of the American people before “a retribution campaign for Mr. Trump.”
Meanwhile, a CBS News poll released on Sunday found that 33% of Americans say Hegseth is a “good choice” for defense secretary, including 64% of Trump voters. But 39% of Americans said they hadn’t heard enough yet about the pick. More broadly, Americans generally say they want Trump to appoint people who’ll speak their minds and who have experience in the field or agency they’ll run.
Sen. Rand Paul, a Kentucky Republican who also appeared on “Face the Nation” on Sunday, said he believes that Hegseth can run the massive Defense Department, despite his lack of experience managing a large organization. Though he did not address Hegseth’s comments about women in combat roles, Paul said he believes the “vast majority of people” support leaders who are picked based on merit, citing Hegseth’s criticism of the Pentagon for what he says has been a move away from merit-based hiring and toward hiring based on “racial characteristics.”
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Israeli strike kills Lebanese soldier as Hezbollah fires at least 185 rockets at Israel
Hezbollah fired at least 185 rockets and other projectiles into Israel on Sunday, wounding seven people in the militant group’s heaviest barrage in several days, in response to deadly Israeli strikes in Beirut while negotiators pressed on with cease-fire efforts to halt the war.
Meanwhile, an Israeli strike on a Lebanese army center killed one soldier and wounded 18 others on the southwestern coastal road between Tyre and Naqoura, Lebanon’s military said. Israel’s military expressed regret and said the strike occurred in an area of combat against Hezbollah, adding that its operations are directed solely against the militants. The strike was under review.
Israeli strikes have killed over 40 Lebanese troops since the start of the war between Israel and Hezbollah, even as Lebanon’s military has largely kept to the sidelines.
Lebanon’s caretaker prime minister, Najib Mikati, condemned it as an assault on U.S.-led cease-fire efforts, calling it a “direct, bloody message rejecting all efforts and ongoing contacts” to end the war.
“(Israel is) again writing in Lebanese blood a brazen rejection of the solution that is being discussed,” a statement from his office read.
The strike occurred in southwestern Lebanon on the coastal road between Tyre and Naqoura, where there has been heavy fighting between Israel and Hezbollah.
Hezbollah began firing rockets, missiles and drones into Israel after Hamas’ Oct. 7, 2023, attack out of the Gaza Strip ignited the war there. Hezbollah has portrayed the attacks as an act of solidarity with the Palestinians and Hamas. Iran supports both armed groups.
Israel has launched retaliatory airstrikes since the rocket fire began, and in September the low-level conflict erupted into all-out war, as Israel launched waves of airstrikes across large parts of Lebanon and killed Hezbollah’s top leader, Hassan Nasrallah, and several of his top commanders.
Hezbollah fired a total of around 160 rockets and other projectiles into Israel on Sunday, some of which were intercepted, the Israeli military said.
Israel’s Magen David Adom rescue service said it was treating two people in the central city of Petah Tikva, a 23-year-old man who was lightly wounded by a blast and a 70-year-old woman suffering from smoke inhalation from a car that caught fire. The first responders said they treated three other people in northern Israel, closer to the border, including a 60-year-old man in serious condition.
It was unclear whether the injuries and damage were caused by the rockets or interceptors.
Israeli airstrikes early Saturday pounded central Beirut, killing at least 20 people and wounding 66, according to Lebanon’s Health Ministry.
Israeli attacks have killed more than 3,500 people in Lebanon, according to Lebanon’s Health Ministry. The fighting has displaced about 1.2 million people, or a quarter of Lebanon’s population.
On the Israeli side, about 90 soldiers and nearly 50 civilians have been killed by bombardments in northern Israel and in battle following Israel’s ground invasion in early October. Around 60,000 Israelis have been displaced from the country’s north.
The Biden administration has spent months trying to broker a cease-fire, and U.S. envoy Amos Hochstein was back in the region last week.
The European Union’s top diplomat called for more pressure on both Israel and Hezbollah to reach a deal, saying one was “pending with a final agreement from the Israeli government.”
Josep Borrell spoke Sunday after meeting with Mikati and Lebanese Parliament Speaker Nabih Berri, a Hezbollah ally who has been mediating with the group.
Borrell said the EU is ready to allocate 200 million euros ($208m) to assist the Lebanese military, which would deploy additional forces to the south.
The emerging agreement would pave the way for the withdrawal of Hezbollah militants and Israeli troops from southern Lebanon below the Litani River in accordance with the U.N. Security Council resolution that ended the 2006 war. Lebanese troops would patrol the area, with the presence of U.N. peacekeepers.
Lebanon’s army reflects the religious diversity of the country and is respected as a national institution, but it does not have the military capability to impose its will on Hezbollah or resist Israel’s invasion.