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5 ways to prepare for mortgage interest rate cuts now

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With mortgage interest rate cuts on the horizon, buyers should consider making certain preparations now.

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Mortgage interest rates are on the decline – and they could fall further in the weeks and months ahead. With the latest inflation report showing the rate dropping again in July (the fourth consecutive month in which it did so) and with it down dramatically from a 40-year high in June 2022, the Federal Reserve is preparing to cut its federal funds rate, which is currently frozen at a range between 5.25% and 5.50%. On August 23, Federal Reserve Chairman Jerome Powell explicitly said that the “time has come” to act. But the time has also come for prospective homebuyers to act, too.

The homebuying process can be a lengthy and complex one, and it’s likely to be complicated by a cooling mortgage interest rate climate. Understanding this, then, buyers should start making some strategic moves now so that they’re better prepared to act when they do ultimately find a home they want to purchase. Below, we’ll detail five ways these buyers can start effectively preparing for mortgage interest rate cuts right now.

Start by seeing how low of a mortgage interest rate you can qualify for here.

5 ways to prepare for mortgage interest rate cuts now

Mortgage interest rates are down, on average, more than a full percentage point from where they were at the end of 2023. But they’re expected to fall further soon, especially if the Fed issues a series of interest rate cuts starting with their next meeting on September 17. Ahead of this action, then, here are five effective ways borrowers can begin preparing for cuts now. 

Shop for lenders

While most mortgage lenders will offer approximately the same rate as one another, they won’t be identical. And even a slight difference in rates between lenders can add up to significant savings over the life of the loan. So start shopping for lenders now to determine which one is currently offering the best deal – and which ones just seem like they are. Once you find a lender you feel comfortable with, you can start the process so that you’re one step closer to locking in a mortgage rate once they’re cut.

Start shopping for mortgage lenders online today.

Boost your credit

It’s vital to remember that the best interest rates and terms will be reserved for borrowers with the highest credit scores. Even the average interest rates you see listed on lender websites and online marketplaces are for those buyers with superior credit. If you’re not one of those types of borrowers, start taking steps to boost your credit right now. There are multiple ways to do so, but it will take time for these actions to reflect on your score so it behooves you to act promptly.

Look to alternatives

Don’t get stuck with a traditional 30-year mortgage simply because it’s familiar. In a changing rate climate, you should explore all alternatives. This includes a 15-year mortgage (which comes with higher payments but lower interest rates and a condensed repayment period). But it also extends to adjustable-rate mortgages, the purchase of mortgage points and a combination of these options, depending on what your lender is willing to offer. You may be surprised at how far you can ultimately lower your rate.

Calculate your budget

You may think you can afford to borrow a certain amount of money, but you need to definitively know that you can. So precisely calculate your budget now and utilize both today’s average mortgage interest rates, and those that could be available in the fall, to more accurately gauge costs. And don’t forget to account for taxes, homeowners insurance and, potentially, private mortgage insurance (PMI), if you don’t want to use the traditional 20% down payment.

Get pre-qualified

When you’re prepared to make an offer on a home the seller’s real estate agent will inevitably ask if you’ve been pre-qualified. And, if you haven’t yet, you could lose the home to a buyer who already has been. Don’t take that risk. You can get pre-qualified for a large loan amount from any number of lenders. You don’t even need to use the one that provides the pre-qualification for your ultimate purchase. But you’ll want to show sellers that you’re serious about buying, especially in a market in which many buyers are expected to compete against one another. A pre-qualification, while not perfect, can help you stand out a bit from the competition.

Learn more about getting pre-qualified here now.

The bottom line

Mortgage interest rates are dropping and buyers looking to capitalize should do all they can to ensure their chances of success. While each buyer’s financial situation is different, many would benefit from shopping for lenders, boosting their credit and exploring alternatives to the traditional 30-year mortgage loan now. And, if they calculate their budget today and move toward getting pre-qualified as soon as possible, the edge they can obtain now could be the difference between buying and losing their dream home in today’s evolving mortgage market.



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After Tyre Nichols’ fatal beating, Memphis officer texted photo of bloodied man to ex-girlfriend, she testifies

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A former Memphis police officer charged in the fatal beating of Tyre Nichols sent his ex-girlfriend a photo of the badly injured man on the night he was punched, kicked and hit with a police baton following a traffic stop, according to trial testimony Wednesday.

Brittany Leake, a Memphis officer and Demetrius Haley’s former girlfriend, testified during the criminal trial that she was on the phone with Haley when officers pulled Nichols over for a traffic stop. She said she heard a “commotion,” including verbal orders for someone to give officers his hands.

The call ended, but Haley later texted the photo in a group chat comprising Haley, Leake and her godsister, she testified. Prosecutors displayed the photo for the jury. It showed Nichols with his eyes closed, on the ground with what appeared to be blood near his mouth and his hands behind his back.

Leake said that when she saw the photo, her reaction was: “Oh my God, he definitely needs to go to the Med.”

The Med is shorthand for Memphis’ trauma hospital.

The fatal beating, caught on police bodycams and street surveillance cameras, has sparked protests and calls for police reform. Officers said they pulled over Nichols for reckless driving, but Memphis’ police chief said there was no evidence to substantiate that claim.

Haley, Tadarrius Bean and Justin Smith are on trial after pleading not guilty to charges that they deprived Nichols of his civil rights through excessive force and failure to intervene, and obstructed justice through witness tampering. Their trial began Sept. 9 and is expected to run three to four weeks. 

Tyre Nichols
Former Memphis police officer Demetrius Haley arrives at the federal courthouse for the second day of jury selection for the trial in the Tyre Nichols case Tuesday, Sept. 10, 2024, in Memphis, Tenn.

George Walker IV / AP


The Memphis Police Department fired the three men, along with Emmitt Martin III and Desmond Mills Jr., after Nichols’ death. The beating was caught on police video, which was released publicly. The officers were later indicted on the federal charges. Martin and Mills have taken plea deals.

During her testimony Wednesday, Leake said she deleted the photo after she saw it and that sending such a photo is against police policy.

“I wasn’t offended, but it was difficult to look at,” she said.

Leake said Haley had sent her photos before of drugs, and of a person who had been injured in a car accident.

Earlier Wednesday, Martin was on the witness stand for a third day. Defense attorneys tried to show inconsistencies between Martin’s statements to investigators and his court testimony. Martin acknowledged lying about what happened to Memphis Police Department internal investigators, to try to cover up and “justify what I did.”

But Martin said he told the truth to FBI investigators after he pleaded guilty in August, including statements about feeling pressure on his duty belt where his gun was located during the traffic stop, but not being able to see if Nichols was trying to get his gun. Martin has testified that he said “let go of my gun” during the traffic stop.

Martin Zummach, the attorney for Justin Smith, asked Martin if he knew of any reasons why Nichols did not simply say, “I give up.”

“He’s out of it,” Martin said. “Disoriented.”

Martin testified that the situation escalated quickly when Haley pulled his gun and violently yanked Nichols from his car, using expletives and failing to tell Nichols why he had been pulled over and removed from the vehicle.

“He never got a chance to comply,” Martin said.

Nichols, who was Black, was pepper sprayed and hit with a stun gun during the traffic stop, but ran away, police video shows. The five officers, who also are Black, then beat him about a block from his home, as he called out for his mother.

Video shows the officers milling about and talking as Nichols struggled with his injuries. Nichols died Jan. 10, 2023, three days after the beating.

An autopsy report shows Nichols – the father of a boy who is now 7 – died from blows to the head. The report describes brain injuries, and cuts and bruises on his head and elsewhere on his body.

Jesse Guy testified that he was working as a paramedic for the Memphis Fire Department the night of the beating. He arrived at the location after two emergency medical technicians, Robert Long and JaMichael Sandridge.

Guy said he was not told about the medical problems Nichols had experienced before he arrived, and that Nichols was injured, seated on the ground and unresponsive.

Nichols had no pulse and was not breathing, and it “felt like he was lifeless,” Guy said.

In the ambulance, Guy performed CPR and provided mechanical ventilation, and Nichols had a pulse by the time he arrived at the hospital, the paramedic said.

Guy said Long and Sandridge did not say if they had checked Nichols’ pulse and heart rate, and they did not report if they had given him oxygen. When asked by one of Bean’s lawyers whether that information would have been helpful in treating Nichols, Guy said yes.

Long and Sandridge were fired for violating fire department policies after Nichols died. They have not been criminally charged.

The five officers also have been charged with second-degree murder in state court, where they pleaded not guilty. Mills and Martin are expected to change their pleas.

Federal prosecutors have previously recommended a 40-year sentence for Martin. A date has not been set in state court yet.

Nichols worked for FedEx, and he enjoyed skateboarding and photography. The city of Sacramento, where Nichols grew up, named a skatepark in his honor. “Tyre fell in love with skateboarding at a young age and it wasn’t long before it became a part of his lifestyle,” states the resolution approved by the city council. He had a tattoo of his mother’s name.

“Tyre Nichols’ family have been praying for justice and accountability from the very beginning of this tragedy,” Ben Crump and Antonio Romanucci, the civil rights attorneys representing Nichols’ family, said in a statement when the trial began. 



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Boeing set to start large-scale furloughs due to machinists strike

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Boeing’s CEO said Wednesday that the company will begin furloughing “a large number” of employees to conserve cash during the strike by union machinists that began last week.

Chief Executive Kelly Ortberg said the people who would be required to take time off without pay starting in coming days include executives, managers and other employees based in the U.S.

“While this is a tough decision that impacts everybody, it is in an effort to preserve our long-term future and help us navigate through this very difficult time,” Ortberg said in a company-wide message to staff.

Boeing didn’t say how many people will face rolling furloughs, but the number is expected to run into the tens of thousands. The aerospace giant had 171,000 employees at the start of the year.

About 33,000 Boeing factory workers in the Pacific Northwest began a strike Friday after rejecting a proposal to raise pay by 25% over four years. They want raises of at least 40%, the return of a traditional pension plan and other improvements in the contract offer they voted down.

Boeing's Seattle Workers Walk Out In First Strike Since 2008
Workers picket outside a Boeing in Everett, Washington, on  Sept. 16, 2024. 

Scott Brauer / Bloomberg via Getty Images


The strike is halting production of several airplane models including Boeing’s best-selling plane, the 737 Max. The company gets more than half of the purchase price when new planes are delivered to buyers, so the strike will quickly hurt Boeing’s cash flow.

Ortberg said selected employees will be furloughed for one week every four weeks while retaining their benefits. The CEO and other senior executives will take pay cuts during the duration of the strike, he said, without stating how deep the cuts will be.

All work related to safety, quality, customer support and certification of new planes will continue during the furloughs, he said, including production of 787 Dreamliner jets, which are built by nonunion workers in South Carolina.

Ortberg said in a memo to employees that the company is talking to the International Association of Machinists and Aerospace Workers about a new contract agreement that could be ratified.

“However, with production paused across many key programs in the Pacific Northwest, our business faces substantial challenges and it is important that we take difficult steps to preserve cash and ensure that Boeing is able to successfully recover,” he said.

Boeing’s chief financial officer warned employees earlier this week that temporary layoffs were possible.

The company, which is based in Arlington, Virginia, but has most of its commercial-airplanes business located in the Pacific Northwest, is also cutting spending on suppliers, freezing hiring and eliminating most travel.

Despite two full days of talks assisted by the Federal Mediation and Conciliation Service, the union said Wednesday that no resolution had been reached and no additional negotiations were scheduled, according to CBS Seattle affiliate KIRO-TV.

Striking workers are picketing at several locations in the Seattle area, Oregon and California. The union, which recommended the offer that members later rejected by a 96% vote, is surveying the workers to learn what they want in a new contract. The union’s last strike at Boeing, in 2008, lasted about two months.

If the walkout doesn’t end soon, Boeing’s credit rating could be downgraded to non-investment or junk status, which would make borrowing more expensive. Shortly after the walkout began Friday, Moody’s put Boeing on review for a possible downgrade, and Fitch said a strike longer than two weeks would make a downgrade more likely.



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A Moment With: Viswa Colluru

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A Moment With: Viswa Colluru – CBS News


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Enveda Biosciences CEO and Founder Viswa Colluru shares his journey to delivering hope through new medicines

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