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Will home equity rates fall below 8% in 2024? Experts weigh in

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If the economy continues to improve in 2024 then rates on home equity loans may drop below 8%.

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After a volatile couple of years following the COVID-19 outbreak, the economy is beginning to show signs of stabilization. 

The inflation rate is fluctuating between 3% and 4%, down from 9.1% in 2022, and the Fed is suggesting that rate hikes are over for this cycle. Further, the median sale price of U.S. homes is settling in the $400,000 to $450,000 range, about $100,000 higher than the average in the first half of 2020. 

If you bought a home in or before 2020, you’re likely sitting on quite a bit of new equity. However, due to the series of rate hikes over the past two years, the interest rates on home-borrowing products like home equity loans and lines of credit (HELOCs) have been elevated. As of February 5th, 2023, the average home equity loan rate was 8.95% and the average HELOC rate was 9.27%. 

The good news is that rate decreases are likely on the horizon. Below, we’ll take a look at how far experts think home equity rates will drop in 2024 and if they think it’s a good year to tap into your equity. 

Start by checking the home equity loan interest rate you could qualify for here now.

Will home equity rates fall below 8% in 2024?

What home equity rates can you expect in 2024? Various experts agree that rates will likely fall below 8%, although it may not be until the second half of the year. 

“By their own estimates, through what is known as the ‘dot plot,’ the Federal Reserve project where they think rates will be in 2024. Currently, these indicators show a 0.75% decrease from their current levels. If this were accurate, rates would end up at 7.75% from its current 8.5% levels,” says Shmuel Shayowitz, president and chief lending officer at Approved Funding. 

However, Shayowitz thinks rates may end up even lower. “I believe that by the time 2024 comes to an end, The Fed will have decreased rates a lot more than the current 0.75% projections,” he says. “I think they won’t cut rates as quickly as they need to, which will mean they’ll need to be more aggressive later in the year.”

Vikram Gupta, the head of home equity at PNC Bank, also thinks that there’s a strong chance that home equity rates will drop in tandem with the prime rate in 2024. 

“Home equity rates are closely aligned with the prime rate, currently at 8.5%, which has been increasing over the last 18 months,” said Gupta, “Given the likelihood of a drop in the prime rate, there’s a strong chance that some customers, especially those with good credit, may be able to get home equity rates below 8% in 2024.”

Ebony J. Howard, a certified public accountant and freelance consultant, also predicts home equity rates will drop below 8% this year, but thinks it’ll likely be later in the year.

“The variable factor is economic growth performance, which is trending towards a more positive outlook, coupled with the Fed’s decision to ease up on further interest rate hikes,” said Howard. 

Start exploring your home equity loan rates and terms here today.

Should you apply for a home equity loan or HELOC in 2024?

With home values at record highs and experts predicting interest rate drops, 2024 can potentially be a good year to tap into your equity

“Homeowners would be smart to take advantage of the historical home appreciation and equity available to them, as well as the aggressive appetite of banks that are presently hungry to get new clients,” says Shayowitz. “As the economy softens, and the rapid rate of home appreciation softens, banks will change their tune.”

Howard also says it could be a good time to take out a home equity loan or HELOC and warns that you shouldn’t wait too long.

“I believe Americans who are considering tapping into their home equity should do so as rates begin to decline. However, they shouldn’t necessarily wait for rates to hit rock bottom. One factor to consider is that when interest rates decrease, home values are likely to follow suit, potentially resulting in less available equity compared to when rates were higher and demand was lower,” she said. 

While we may be entering a good window to take out home equity loans and HELOCs, the most important factor is your ability to afford the payments as your home will be on the line. “Before rushing into tapping into equity, ensure that you are financially capable of managing the equity loan,” says Howard. 



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Floods, landslides struck parts of Bosnia as residents slept, leaving at least 16 dead and several missing

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A severe rainstorm struck Bosnia overnight Friday, killing at least 16 people in floods and landslides in several towns and villages in central and southern parts of the country, with surging waters rushing into people’s homes as they were sleeping.

Rescue services in the south said several people were missing and called on volunteers and the army to assist as roads were closed and houses left without electricity.

Josip Kalem, a resident of Fojnica, one of the towns hit by the floods, said his dog’s barking woke him up at around 4 a.m. When he came out on the terrace, he saw the water rising rapidly.

“I came down, woke up my wife, and we looked around, we could not get out of the house. We saw more and more water coming in,” he said. “All of a sudden, the water was flooding the garage, basement, my car — everything. The water swept it all away, including my dog. Flood took it downstream.”

Andja Milesic, another resident of Fojnica, also said she was caught by surprise in the middle of the night.

“When I woke up, my bedroom floor was already soaked. I walked into the hallway — water was everywhere — the living room, everywhere,” she said. “It was horrible.”

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A car is submerged in flood waters outside an apartment building in the village of Kiseljak, northern Bosnia, Friday, Oct. 4, 2024.

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Darko Juka, a spokesman for the local administration, said at least 14 people had died in and around the southern town of Jablanica. Officials later said two more bodies have been found.

“Those are the ones who have been discovered by rescuers,” he said. “We still don’t know the final death toll.”

“I don’t remember such a crisis since the war,” Juka said referring to the 1992-95 war in Bosnia that left the country in ruins. “The scale of this chaotic situation is harrowing.”

Defense Minister Zukan Helez told N1 regional television that troops have been engaged to help and that the casualties were reported.

Helez said that “hour after hour we are receiving news about new victims. … Our first priority is to save the people who are alive and buried in houses where the landslides are.”

A pregnant woman lost her baby after she was rescued from the floods and transferred to a hospital in the regional center of Mostar. Authorities said doctors were fighting for her life as well. Separately, a child was successfully rescued and hospitalized, local officials said.

Rescue services in the towns of Jablanica and Kiseljak said the power was off overnight and mobile phones lost their signal.

The Jablanica fire station said that the town was completely inaccessible because roads and trainlines were closed.

“The police informed us that the railroad is also blocked,” the state rescue service said in a statement. “You can’t get in or out of Jablanica at the moment. Landline phones are working, but mobile phones have no signal.”

It urged people not to venture out on the flooded streets.

Human-caused climate change increases the intensity of rainfall because warm air holds more moisture. This summer, the Balkans were also hit by long-lasting record temperatures, causing a drought. Scientists said the dried-out land has hampered the absorption of floodwaters.

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Apartment buildings are reflected at a flooded soccer field after a heavy rain in the village of Kiseljak, northern Bosnia, Friday, Oct. 4, 2024.

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Drone footage broadcast on Bosnian media showed villages and towns completely submerged under water, while videos on social networks showed dramatic scenes of muddy torrents and damaged roads.

One of the busiest roads linking Sarajevo with the Adriatic coast via Jablanica was swept into a river, together with a railway line in a huge landslide, according to photos.

“Many people are endangered because of big waters and landslides. There is information about victims and many injured and missing persons,” said the civic protection service.

Authorities urged people to stay on the upper floors of their homes. Reports said surging waters swept away domestic animals and cars as the water swiftly filled up lower floors of buildings.

The heavy rains and strong winds were also reported in neighboring Croatia, where several roads were closed and the capital of Zagreb prepared for the swollen Sava River to burst its banks.

Heavy winds have hampered traffic along the southern coast of the Adriatic Sea, and flash floods caused by heavy rain threatened several towns and villages in Croatia.

Floods caused by torrential rains were also reported in Montenegro, south of Bosnia, where some villages were cut off and roads and homes flooded.

In 2014, floodwaters triggered more than 3,000 landslides across the Balkans, laying waste to entire towns and villages and disturbing land mines leftover from the region’s 1990s war, along with warning signs that marked the unexploded weapons.



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The Uplift: Steve Gleason and more

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The Uplift: Steve Gleason and more – CBS News


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NFL legend Steve Gleason shares his experience with ALS in a heartfelt conversation with David Begnaud. A man whose life changed drastically in a split second is using the life-changing event to inspire others. Plus, more heartwarming stories.

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Eye on America: Inside an extreme sports camp, and a look at how libraries are innovating

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Eye on America: Inside an extreme sports camp, and a look at how libraries are innovating – CBS News


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In Pennsylvania, we visit a sleepaway camp that’s training the next generation of extreme sports stars. And in South Carolina, we see how public libraries are evolving to better serve the growing and diverse needs of its community members. Watch these stories and more on “Eye on America” with host Michelle Miller.

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