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How far will home equity loan rates drop after a Fed rate cut? Here’s what experts say.

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Home equity loan interest rates could fall further this September, according to experts.

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The current high-interest-rate environment has been tough on borrowers, who are facing higher rates on just about every type of credit product. While the rates on home equity loans and home equity lines of credit (HELOCs) have been lower than many other options, they’re still relatively high compared to the last 15 or so years. 

However, Fed rate cuts look to be on the horizon which will help to provide borrowers with some relief. “Many lenders set the interest rates they charge based on the prime rate — the rate banks offer their largest, most favored borrowers — which itself is benchmarked to the federal funds rate,” says Riley Adams, CPA, founder and CEO at WealthUp. 

But what will a Fed rate cut mean for home equity rates? We asked some experts for their predictions.

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

How far will home equity loan rates drop after a Fed rate cut? 

Overall, experts generally predict a small initial Fed rate cut which will result in a small decrease in home equity interest rates.

“I predict the Federal Reserve will start cutting rates in September based on positive indicators that inflation is starting to decrease. These indicators include monthly economic reports called the Consumer Price Index and the jobs report,” says Jeremy Schachter, branch manager at Fairway Independent Mortgage Corporation. He explains that both of these show that inflation and the cost of consumer goods and services are starting to fall. 

When a cut is made, Schachter says HELOC interest rates will be reduced by the same amount. “So, if the Federal Reserve cuts rates by .25%, your rate will go down by .25%,” says Schachter. 

Adams also predicts that decreases in home equity rates will be similar to the amount of a Fed rate cut. “If the Federal Reserve cuts interest rates by 25 bps, as is largely expected, home equity rates likely will drop 25 to 50 bps,” says Adams. 

Further, Andrew Griffith, DBA and fellow associate professor of accounting at Iona University, doesn’t expect big changes. “For borrowers, I expect that the interest rates will decline slightly if at all,” Griffith says. 

As for how long it will take to see changes, it’s often right away — and sometimes even in anticipation of the cuts. 

“When the Fed cuts rates, HELOC rates will fall quickly as well. HELOCs are variable loans with rates tied to the prime rate, which tends to move in tandem with the federal funds rate. HELOCs also can change their rates monthly, so the benefit of lower rates will be felt quickly by HELOC borrowers,” says Jill Fopiano, CFA, CFP, president and CEO of O’Brien Wealth Partners. 

She adds that it’s important to keep realistic expectations in regard to how much Fed rates will decrease. “As the idiom goes, rates take the elevator up and the escalator – or even the stairs – going down,” Fopiano says. 

Learn more about your home equity loan options online today.

The bottom line

Interest rate cuts are on the horizon but aren’t expected to be significant in 2024. If you’re trying to decide between a home equity loan and a HELOC, a HELOC may be more beneficial if you want to take advantage of interest rate decreases in the weeks and months to come. Schachter explains that home equity loans typically come with fixed rates that remain the same throughout your loan term while HELOCs tend to have variable rates that align with changes in the market. However, although HELOCs help you take advantage of rate decreases, they also present the risk of cost increases if rates go up. You’ll have to weigh the pros and cons to decide which is better for your situation. 



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Former Israeli hostages released in truce 1 year ago call for action to release those still held

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Former Israeli hostages who were freed from Hamas captivity during a week-long humanitarian pause in fighting exactly one year ago Sunday called for immediate action to secure a deal for the release of those still held.

The only truce in the ongoing Israel-Hamas war on Nov. 24, 2023 – fewer than two months after fighting began – led to the release of 80 Israelis held by militants in Gaza. They were freed in exchange for 240 Palestinians detained in Israeli jails.

Repeated efforts since then by mediators from Qatar, Egypt and the United States to secure another truce and hostage release have failed. Qatar early this month said it was suspending its mediation role until the warring sides show “seriousness.”

Protests continue in Tel Aviv, demanding hostage swap deal
Thousands of Israelis gather with banners and photos of hostages to protest against Israeli Prime Minister Benjamin Netanyahu and his government for not signing the ceasefire agreement with Gaza and to demand hostage swap deal with Palestinians in Tel Aviv, Israel on November 23, 2024.

Mostafa Alkharouf/Anadolu via Getty Images


Gabriella Leimberg was kidnapped during the Oct. 7, 2023, Hamas attack and was released along with her daughter, Mia, and sister Clara.

“For 53 days, the one thing that kept me going is that we, the people of Israel, the Jewish people, sanctify life — we don’t leave anyone behind,” she said.

Leimberg added: “Everything has already been said and now action is required. We don’t have any more time.”

Around 100 hostages are still in Gaza, and at least a third are believed to be dead.

“I survived and I was fortunate to get my entire family back,” Leimberg said. “I want and demand this for all the families of the hostages.”

Hamas wants Israel to end the war and withdraw all troops from Gaza. Israel has offered only to pause its offensive.

The Palestinian death toll from the war surpassed 44,000 this week, according to Gaza’s Health Ministry, which does not distinguish between civilians and combatants in its count.

Israel Palestinians
Placards read in Hebrew: “The boss is satisfied, the hostages are dying” and “Instead of consciousness, make a deal”.

Maya Alleruzzo / AP


Danielle Aloni, who was kidnapped with her five-year-old daughter, Emelia, and freed after 49 days, spoke at the ceremony of the “increasing danger” those still being held face every day.

She said those still in captivity “suffer physical, sexual, and psychological abuse, their identity and dignity crushed anew each day”.

“It took the Israeli government about two months to secure a deal for me and 80 other Israeli hostages. Why is it taking over a year to reach another deal to free them from this hell?” asked Aloni, whose brother-in-law, David Cunio, and his brother, Ariel Cunio, are still being held.

She emphasized that, even though she and the other hostages gained their freedom a year ago, “we haven’t really left the tunnels,” — referring to Hamas’ underground tunnels where many of the hostages were held.

“The feeling of suffocation, the terrible humidity, the stench — these sensations still envelop us,” Aloni said.

“If people could truly understand what it means to be held in subhuman conditions in tunnels, surrounded by terrorists for 54 days — there’s no way they would allow hostages to remain there for 415 days!” said Raz Ben Ami, who was released in the deal a year ago.

Her husband, Ohad, is still among those being held.

Ben Ami called for a ceasefire to “bring back all the hostages as quickly as possible”.



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Couple charged for allegedly stealing $1 million from Lululemon in convoluted retail theft scheme

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A couple from Connecticut faces charges for allegedly taking part in an intricate retail theft operation targeting the apparel company Lululemon that may have amounted to $1 million worth of stolen items, according to a criminal complaint.

The couple, Jadion Anthony Richards, 44, and Akwele Nickeisha Lawes-Richards, 45, were arrested Nov. 14 in Woodbury, Minnesota, a suburb of Minneapolis-St. Paul. Richards and Lawes-Richards have been charged with one count each of organized retail theft, which is a felony, the Ramsey County Attorney’s Office said. They are from Danbury, Connecticut.

The alleged operation impacted Lululemon stores in multiple states, including Minnesota. 

“Because of the outstanding work of the Roseville Police investigators — including their new Retail Crime Unit — as well as other law enforcement agencies, these individuals accused of this massive retail theft operation have been caught,” a spokesperson for the attorney’s office said in a statement on Nov. 18. “We will do everything in our power to hold these defendants accountable and continue to work with our law enforcement partners and retail merchants to put a stop to retail theft in our community.”

Both Richards and Lawes-Richards have posted bond as of Sunday and agreed to the terms of a court-ordered conditional release, according to the county attorney. For Richards, the court had set bail at $100,000 with conditional release, including weekly check-ins, or $600,000 with unconditional release. For Lawes-Richards, bail was set at $30,000 with conditional release and weekly check-ins or $200,000 with unconditional release. They are scheduled to appear again in court Dec. 16.

Prosecutors had asked for $1 million bond to be placed on each half of the couple, the attorney’s office said.

Richards and Lawes-Richards are accused by authorities of orchestrating a convoluted retail theft scheme that dates back to at least September. Their joint arrests came one day after the couple allegedly set off store alarms while trying to leave a Lululemon in Roseville, Minnesota, and an organized retail crime investigator, identified in charging documents by the initials R.P., recognized them.  

The couple were allowed to leave the Roseville store. But the investigator later told an officer who responded to the incident that Richards and Lawes-Richards were seasoned shoplifters, who apparently stole close to $5,000 worth of Lululemon items just that day and were potentially “responsible for hundreds of thousands of dollars in loss to the store across the country,” according to the complaint. That number was eventually estimated by an investigator for the brand to be even higher, with the criminal complaint placing it at as much as $1 million.

Richards and Lawes-Richards allegedly involved other individuals in their shoplifting pursuits, but none were identified by name in the complaint. Authorities said they were able to successfully pull off the thefts by distracting store employees and later committing fraudulent returns with the stolen items at different Lululemon stores.

“Between October 29, 2024 and October 30, 2024, RP documented eight theft incidents in Colorado involving Richards and Lawes-Richards and an unidentified woman,” authorities wrote in the complaint, describing an example of how the operation would allegedly unfold. 

“The group worked together using specific organized retail crime tactics such as blocking and distraction of associates to commit large thefts,” the complaint said. “They selected coats and jackets and held them up as if they were looking at them in a manner that blocked the view of staff and other guests while they selected and concealed items. They removed security sensors using a tool of some sort at multiple stores.”

CBS News contacted Lululemon for comment but did not receive an immediate reply.



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Former Trump national security adviser says next couple months are “really critical” for Ukraine

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Washington — Lt. Gen. H.R. McMaster, a former national security adviser to Donald Trump, said Sunday that the upcoming months will be “really critical” in determining the “next phase” of the war in Ukraine as the president-elect is expected to work to force a negotiated settlement when he enters office.

McMaster, a CBS News contributor, said on “Face the Nation with Margaret Brennan” that Russia and Ukraine are both incentivized to make “as many gains on the battlefield as they can before the new Trump administration comes in” as the two countries seek leverage in negotiations.

With an eye toward strengthening Ukraine’s standing before President-elect Donald Trump returns to office in the new year, the Biden administration agreed in recent days to provide anti-personnel land mines for use, while lifting restrictions on Ukraine’s use of U.S.-made longer range missiles to strike within Russian territory. The moves come as Ukraine marked more than 1,000 days since Russia’s invasion in February 2022. 

Meanwhile, many of Trump’s key selection for top posts in his administration — Rep. Mike Waltz for national security adviser and Sens. Marco Rubio for secretary of state and JD Vance for Vice President — haven’t been supportive of providing continued assistance to Ukraine, or have advocated for a negotiated end to the war.

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H.R. McMaster on “Face the Nation with Margaret Brennan,” Nov. 24, 2024.

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McMaster said the dynamic is “a real problem” and delivers a “psychological blow to the Ukrainians.”

“Ukrainians are struggling to generate the manpower that they need and to sustain their defensive efforts, and it’s important that they get the weapons they need and the training that they need, but also they have to have the confidence that they can prevail,” he said. “And any sort of messages that we might reduce our aid are quite damaging to them from a moral perspective.”

McMaster said he’s hopeful that Trump’s picks, and the president-elect himself, will “begin to see the quite obvious connections between the war in Ukraine and this axis of aggressors that are doing everything they can to tear down the existing international order.” He cited the North Korean soldiers fighting on European soil in the first major war in Europe since World War II, the efforts China is taking to “sustain Russia’s war-making machine,” and the drones and missiles Iran has provided as part of the broader picture.

“So I think what’s happened is so many people have taken such a myopic view of Ukraine, and they’ve misunderstood Putin’s intentions and how consequential the war is to our interests across the world,” McMaster said. 

On Trump’s selections for top national security and defense posts, McMaster stressed the importance of the Senate’s advice and consent role in making sure “the best people are in those positions.”

McMaster outlined that based on his experience, Trump listens to advice and learns from those around him. And he argued that the nominees for director of national intelligence and defense secretary should be asked key questions like how they will “reconcile peace through strength,” and what they think “motivates, drives and constrains” Russian President Vladimir Putin.

Trump has tapped former Rep. Tulsi Gabbard to be director of national intelligence, who has been criticized for her views on Russia and other U.S. adversaries. McMaster said Sunday that Gabbard has a “fundamental misunderstanding” about what motivates Putin.

More broadly, McMaster said he “can’t understand” the Republicans who “tend to parrot Vladimir Putin’s talking points,” saying “they’ve got to disabuse themselves of this strange affection for Vladimir Putin.” 

Meanwhile, when asked about Trump’s recent selection of Sebastian Gorka as senior director for counterterrorism and deputy assistant to the president, McMaster said he doesn’t think Gorka is a good person to advise the president-elect on national security. But he noted that “the president, others who are working with him, will probably determine that pretty quickly.”



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