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Israel’s Netanyahu faces huge wave of anger over handling of war with Hamas as bloodshed continues in Gaza
Tel Aviv — Anger at Prime Minister Benjamin Netanyahu following the killings of the six Israeli hostages whose bodies were found over the weekend in a tunnel in Gaza was still mounting Wednesday as bloodshed in the Palestinian territory continued. The fury at Israel’s long-time leader manifested in a third consecutive night of mass protests, with tens of thousands of increasingly desperate Israelis demanding that Netanyahu agree to a cease-fire deal with Hamas to bring the remaining 101 captives back home. About 75 of the hostages are believed to still be alive.
“The man is a liar, a compulsive liar,” protester Yair Katz fumed to CBS News on Tuesday night. “He’s a crook and a liar, and he’s a criminal.”
NOTE: This report includes an image of a dead child that readers may find disturbing.
Like many Israelis, Katz believes Netanyahu is putting his political fortune — which hinges on the survival of his tenuous governing coalition with far-right parties that reject a cease-fire with Hamas — above the fate of the hostages.
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The protesters have vowed to continue demonstrating until Netanyahu agrees to a cease-fire and hostage release deal, but so far, the veteran politician has remained stubbornly defiant. He insisted in a Monday night address to his nation that he would not to “give in to pressure.”
Netanyahu has refused to accept any agreement that calls for Israeli forces to pull out of the Philadelphi Corridor, a narrow strip of land along Gaza’s southern border with Egypt. He says Israel must maintain a troop presence there to prevent Hamas from rearming itself through smuggling tunnels across the border — an alleged flow of goods that both Egypt and Hamas deny.
Egypt and Hamas have both insisted on a full Israeli withdrawal from the corridor, and Hamas says it agreed to a previous cease-fire proposal, backed by President Biden, that included the provision, but that Netanyahu then changed his terms.
It remained unclear Wednesday how much flexibility Netanyahu’s government might be willing to show on the matter in the ongoing negotiations, with conflicting reports suggesting it could be included as part of a second phase of a cease-fire deal, but others saying the prime minister was unwilling to bend.
At a media briefing Tuesday night, former Israeli Defense Minister Benny Gantz said the Philadelphi Corridor did not pose an “existential threat” to the country and should not get in the way of a hostage release deal. Gantz is a vocal critic of Netanyahu, but it wasn’t the first time there appeared to be disagreement between senior Israeli military figures — past and present — and the prime minister.
What did appear clear on Wednesday was that unless and until Netanyahu changes his mind, the war won’t end.
Even as the United Nations races to vaccinate hundreds of thousands of children against a polio outbreak in Gaza — an emergency vaccination campaign for which Israel agreed to a series of limited military pauses — Israeli forces have continued to target several areas in the devastated Palestinian territory.
Among the places hit by strikes in recent days was the relatively safe central zone of Gaza, around the cities of Deir al-Balah and Gaza City. It was there, in the enclave’s once teaming capital city, that nine-year-old Tala Abu Ajwan was killed by shrapnel from an Israeli airstrike on Tuesday.
She was still wearing her pink rollerblades when she was pronounced dead at the Al-Ahli Baptist Hospital in Gaza City.
Her family shared pictures of her life before the war, showing a happy little girl whose life was abruptly cut short as she played with friends. Local medics said she was among nine people killed when Israeli missiles slammed into a residential building next to a park in Gaza City.
CBS News has sought comment from the Israeli military about what was targeted in the attack.
Family photo/Handout
In a statement largely mirroring others issued by the Israel Defense Forces since the war started, the IDF said Tuesday that a separate strike had hit a Hamas “command and control center” inside a building in Gaza City being using “to direct and conduct terror attacks against IDF troops and the State of Israel.”
“Prior to the strike, numerous steps were taken to mitigate the risk of harming civilians, including the use of precise munitions, aerial surveillance and additional intelligence,” the IDF said, reiterating its frequent accusation that Hamas “systematically violates international law and operates from within civilian infrastructure in the Gaza Strip.”
Ajwan’s mother was left inconsolable with grief, joining the families of almost 41,000 Palestinians killed since the war began, according to health officials in the Hamas-run territory, who do not differentiate between civilian and combatant casualties.
Dawoud Abo Alkas/Anadolu/Getty
The Gaza war was sparked by Hamas’ unprecedented Oct. 7 terrorist attack on Israel, which saw the militants kill some 1,200 people and take about 250 others hostage. Many of those captives were freed in a prisoner exchange during the only brief cease-fire achieved to date, in November.
With so much suffering, after nearly 11 months of brutal violence and an agonizing, ongoing hostage crisis, the Biden administration has said it’s now working to develop a new cease-fire and hostage release proposal in a bid to end the war.
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Even though mortgage interest rates surged in recent years, they did little to drop home values. Instead, home prices have remained steady and even grown in many parts of the country. Now, with a major cut to the federal funds rate already issued and additional ones possible for the months ahead, prices could rise again as sellers try to take advantage of a wider pool of buyers. Homes that had been priced in the $700,000 range, for example, could now be around $800,000 or $850,000. And homes priced at $1 million or more are already growing.
Understanding this reality, then, buyers should start preparing for higher home prices now. One of the best ways to do so is by calculating the potential monthly costs of a mortgage loan. Below, we’ll detail what an $850,000 mortgage will cost per month – and what it could look like if interest rates decline as anticipated.
See what mortgage interest rate you could lock in here now.
How much will a $850,000 mortgage cost per month?
The average mortgage rate on a 30-year mortgage dropped to 6.15% this week, the lowest it’s been in two years (September 2022). But with rate cuts possible for November and when the Fed meets again in December that rate could fall again before the year ends – assuming lenders don’t start pricing in a series of presumed rate cuts to come.
Here’s what an $850,000 mortgage loan would cost per month at the rate available today, assuming the conventional 20% down payment ($170,000), minus any taxes or insurance costs:
- 30-year mortgage at 6.15%: $4,142.75 per month
- 15-year mortgage at 5.65%: $5,610.44 per month
While today’s mortgage rates aren’t likely to fall directly in tandem with the federal funds rate, a half a percentage point reduction seems possible now following the Fed’s moves this week. Here’s what those payments could fall to assuming a half a percentage point reduction between now and January.
- 30-year mortgage at 5.65%: $3,925.20 per month
- 15-year mortgage at 5.15%: $5,430.68 per month
It’s important to remember, however, that mortgage interest rates change daily (except for weekends and holidays). And in today’s evolving rate climate, these rates could fall even further than many anticipate, thus making an $850,000 mortgage loan even more affordable. So keep an eye on the market and be prepared to lock in a low rate when found.
Start shopping for rates and lenders here now.
Other factors to account for
While the above numbers reflect what buyers can expect to pay for an $850,000 mortgage now (and after a rate reduction of half a percentage point), they’re not the only factor that should be added in when trying to pinpoint your exact monthly mortgage payment. Specifically, don’t forget:
- Homeowners insurance: The bank will want their loan protected and you’ll want to be insured against theft, damage and injuries. Start shopping around now to find the best deal and consider “bundling” any policy with your car insurance to reduce costs.
- Flood insurance: Depending on where your home is located, the lender may require flood insurance proof before signing off on the loan. So be sure to ask if the home is located in a flood zone and ask if you can assume the existing policy, if applicable.
- Taxes: Taxes could be paid annually or you can have them divided among your monthly mortgage payments but this could be a significant amount of money to account for so be sure to determine the exact cost before closing, and, ideally, before making a formal offer.
- Private mortgage insurance: Don’t have enough money to make the conventional 20% down payment? Then you’ll have to pay private mortgage insurance, or PMI, to your lender until you’ve reached that equity threshold.
The bottom line
The Fed’s rate cuts could make the monthly payments on an $850,000 mortgage a lot more affordable, but navigating the current real estate market still requires careful consideration of a range of factors. As interest rates fluctuate and home prices adjust, the market could shift, and potential buyers may want to stay informed about trends but also thoroughly calculate all associated costs during the process. That way, they can make more confident decisions about their path to homeownership.
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The mortgage rate landscape is undergoing a rapid transformation now that inflation is cooling. For starters, there has been a notable drop in mortgage rates over the past few weeks, with rates hitting a two-year low on Wednesday. This shift has already begun to stir excitement, as more affordable borrowing costs open doors for those previously priced out of homeownership.
The Federal Reserve also conducted its first rate cut since 2020 (September 18), reducing the federal funds rate by an unexpected 50 basis points. Most analysts expected the Fed rate cut to be just 25 basis points, making this decision larger and more impactful than anticipated.
This move is expected to put additional downward pressure on interest rates across the board, including mortgages, and may present an opportunity for borrowers to lock in more favorable rates. But how exactly will this substantial Fed rate cut impact mortgages? Below, we’ll break down what you should know.
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Here’s how the Fed’s big rate cut affects mortgages
The Federal Reserve’s decision to implement a 50 basis point rate cut has injected a new layer of complexity into the mortgage market. While the impact of a standard 25 basis point reduction has likely been factored into current mortgage rates, which are sitting at an average of 6.15%, it’s unclear exactly how mortgage rates will respond to this larger rate cut.
One outcome could be that the larger rate cut will cause mortgage rates to fall even further in the coming days and weeks, building on the recent trend of declining rates. This could create a more favorable environment for borrowers, with the possibility of mortgage rates dipping to levels not seen in years.
However, it’s crucial to understand that the Federal Reserve’s actions, while significant, are not the sole factor influencing mortgage rates. The mortgage market is a complex ecosystem affected by various economic indicators. Long-term bonds, particularly the 10-year Treasury yield, also play a pivotal role in determining mortgage rates. So while the Fed’s rate cut will likely push these yields lower, other factors can also sway bond yields and, consequently, mortgage rates.
The mortgage industry itself may also play a role in tempering any dramatic rate drops. For example, lenders might be hesitant to lower rates too quickly or too far as they balance their desire to attract borrowers with the need to maintain profitability. This could result in a more gradual decline in mortgage rates rather than an immediate, sharp drop.
For potential homebuyers or those considering refinancing, the Fed’s larger-than-expected rate cut presents both opportunities and potential challenges. On one hand, the prospect of lower mortgage rates is certainly appealing. Lower rates translate to more affordable monthly payments and increased buying power, potentially allowing borrowers to qualify for larger loans or more desirable properties.
The allure of lower rates could also bring its own set of complications, however. If mortgage rates decline even further, it’s likely to attract more buyers to the market. This increased demand could lead to heightened competition for available properties, potentially driving up home prices and offsetting some of the benefits of lower interest rates.
Those waiting for rates to bottom out before making a move may also find themselves in a precarious position. Timing the market is notoriously difficult, and there’s a risk that rates could begin to rise again before you can act. After all, economic conditions can shift rapidly, which could reverse the current downward trend in rates.
Lenders are also more likely to see an uptick in inquiries and applications in the wake of the Fed’s decision. This increased volume could lead to longer processing times and potentially stricter underwriting standards, so borrowers should be prepared for this possibility and consider getting pre-approved or starting the application process early.
Find out how low your mortgage loan rate could be now.
The bottom line
The Federal Reserve’s unexpected 50 basis point rate cut will likely have a noticeable effect on the mortgage market, but its exact impact remains uncertain. While lower rates may materialize in the short term, a range of factors will influence how mortgage rates move in the future. So, homebuyers and homeowners who plan to refinance should carefully consider their options, recognizing that waiting for the perfect moment could be risky in an unpredictable market. Securing a favorable rate now may be the best course of action instead, especially with rates already at a two-year low.