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4 mortgage interest rate myths to know now

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The mortgage interest rates listed on lender websites may not be as low as they appear.

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Homebuyers and owners looking to refinance finally received a bit of positive news on September 18 when the Federal Reserve issued a reduction to its federal funds rate, its first since 2020. Anticipating that cut, mortgage lenders started reducing their offers, resulting in mortgage rates plunging to their lowest point in two years, or since September 2022. And they’ve continued to drop in the week since.

These drops, and the potential for additional reductions in November and December, are exciting for homebuyers. Mortgage rates rose exponentially in recent years alongside the inflation rate, hitting their highest point since 2000 in 2023, so any relief is welcome. To truly take advantage of this evolving climate, however, it helps to know the nuances of the mortgage interest rate climate. And that means being able to dispel some popular mortgage interest rate myths. Below, we’ll break down four of them.

See how low of a mortgage interest rate you could lock in here now.

4 mortgage interest rate myths to know now

Considering entering the homebuying market now? Ready to apply for a refinance? Don’t do so without first knowing the truth behind these four popular myths.

Mortgage interest rates will fall alongside the Fed

Sure, mortgage interest rates can and likely will fall as the federal funds rate does. But they won’t fall by precisely the same amount or even at the same time, as some lenders start pricing in presumed rate cuts before they’re official. That’s why the mortgage interest rates most are seeing listed online this week aren’t materially different than what was listed earlier in September. So don’t budget for exact reductions solely based on how the Fed acts as mortgage rates are influenced by more than just that.

Start exploring your current mortgage rate options online today.

Mortgage interest rates could fall back to where they were

Mortgage interest rates will likely fall in the months again, perhaps by a somewhat significant margin. But they’re highly unlikely to fall back to where they were in 2020 and 2021 during the height of the pandemic. That’s when the economy was different from where it is now and rates were near record lows. Don’t count on that happening again, minus a major economic driver. And remember that today’s mortgage rates, historically, are already on the low end. So don’t expect them to fall to 3% again.

The mortgage rate you see listed online is the one you’ll get

It can be smart (and addicting) to check mortgage rates each day. But it’s critical to remember that the one you see listed online on a lender’s website isn’t necessarily the one you’ll be offered. That’s because mortgage rates listed online are for those with the cleanest credit histories and highest credit scores. If you don’t have both, you’ll be offered a higher rate. But that’s not the only caveat. Mortgage rate listings often also have mortgage points and other reductions already accounted for. So the rate you’re offered, even with a high credit score, could ultimately be higher if you forego paying for those fees and reductions. Read the fine print accordingly.

Mortgage and mortgage refinance rates are the same

Are you a homeowner eager to refinance and see now as your opportunity to act? You may not be wrong. Just be sure that you’re checking the right column online as mortgage interest rates for purchases and those for refinancing existing loans are not the same. And there could be a 25 basis point difference (or more), between the two. Make sure to monitor the right rate type, then, before getting started.

Compare the different mortgage purchase and refinance rates available to you here.

The bottom line

The homebuying and refinancing processes can be stressful enough without having to deal with incomplete or misleading information. So be sure to clearly understand the above myths and their corresponding realities. By doing so you can better position yourself for homebuying (or refinancing) success both now and along your longer homeownership journey. 



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Texas man fights to reunite with wife and kids, including newborn twins, who were unexpectedly deported to Mexico

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A Texas man is fighting to get his wife and four children back after he says they were unexpectedly deported to Mexico.

Federico Arellano is a U.S. citizen, and says three of his four kids are too. He says there has been a misunderstanding and that his family was misled. 

Now, a video call is the only way he’s been able to see his family.

Agents deport family

ICE agents deported Arellano’s wife, Christina Salazar, and their four kids to Mexico last week after they say they were told to come to the ICE field office in Houston to discuss Salazar’s immigration case.

“They told me that they were going to take her to Mexico because she had a deportation order,” Arellano said.

A judge signed off on the order in early October after Salazar missed an immigration hearing. The family says Salazar was recovering from giving birth to premature twins and doctors recommended she recover at home during that time.

Arellano said he informed the court about the situation and claims they reassured him by phone the date could be rescheduled.

Nearly two months later, Arellano said agents detained his wife and then their four children.

Immigration attorney Isaias Torres, who represents the family, said he has not seen an instance like this one that involves a family.

“I’ve seen criminals, ardent criminals, people with prior deportation. … I don’t understand why this happened,” Torres said. 

Hopes to reunite

A video call is now the only way Arellano can see Salazar and their kids for the foreseeable future.

“I’m alone. I have no one to help me with my kids here and they are really sick,” Salazar said in a video call from Reynosa, Mexico.

Attorneys for the family said they are reaching out to members of Congress for help. ICE and the DOJ have not responded to CBS News for a request for comment.

Meanwhile, Arellano said he just wants his family back.

“To get them back and of course they return to me just as they were taken away. I want them to return to me,” he said.



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Charlotte Hornets apologize after a gift-giving skit with young fan went awry

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The Charlotte Hornets have issued an apology for a recent skit involving a gift and a young fan. 

During the second quarter of a game against the Philadelphia 76ers on Monday, the Hornets performed a skit where a child was brought down to the court to meet the team’s mascot, who was dressed as Santa Claus, CBS Sports reported. A letter from the boy to Santa asking for a PlayStation 5, was read aloud. Then a cheerleader gave the boy a bag containing the video game console. While the cameras rolled, the boy seemed elated to have received the console. 

Once the cameras stopped rolling, though, the video game station was taken away from the boy and he was given a jersey instead. The boy’s uncle was told that he would not be able to keep the console. A clip of the incident went viral on social media. 

The Hornets issued an apology on Tuesday, saying that the skit “missed the mark” and “included bad decision making and poor communication.” 

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Charlotte Hornets mascot Hugo in 2021. 

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“Simply put, we turned the ball over and we apologize. We have reached out to the family and are committed to not only making it right but to exceeding expectations. We will be providing the fan with the PS5 that he should have taken home last night along with a VIP experience to a future game,” the team said, according to CBS Sports. “Our goal is and will remain to elevate the guest experience for every person that enters Spectrum Center, and to show our fans how much we appreciate their relentless support.” 

The Hornets have won seven games this season and lost 19, according to ESPN

Basketball star Michael Jordan sold his majority ownership in the team to a group of investors last year for a reported $3 billion. 



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Senate passes $895 billion defense bill with controversial gender-affirming care restriction

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Washington — The Senate approved the mammoth $895 billion National Defense Authorization Act on Wednesday, despite concern from some Democrats over a controversial policy restricting gender-affirming care for children of servicemembers. 

In a 85 to 14 vote, the Senate approved the legislation, which the House passed last week. Eleven Democrats and three Republicans voted against it in the upper chamber. The bill now heads to President Biden’s desk for his signature. 

The 1,800 page national security legislation to authorize funding for the Defense Department for fiscal year 2025. But the bill includes a handful of controversial policies, like the gender-affirming care restriction, and lost support from the majority of Democrats in the House. 

The Democratic-controlled Senate pushed forward with the measure nonetheless. Senate Majority Leader Chuck Schumer noted that while the NDAA “isn’t perfect,” it still “includes some very good things that Democrats fought for” — citing provisions aimed at standing up against the Chinese Communist Party, boosting the use of artificial intelligence for national defense and expanding domestic tech innovation.

“Congress has passed the NDAA on a bipartisan basis for over six straight decades, and this year will be no different,” Schumer said ahead of the vote on Wednesday. “We’re passing the NDAA and that’s a very good thing.”

Senate Majority Leader Chuck Schumer appears for a news conference following the weekly Senate Democratic policy luncheon at the U.S. Capitol on Nov. 19, 2024, in Washington, D.C.
Senate Majority Leader Chuck Schumer appears for a news conference following the weekly Senate Democratic policy luncheon at the U.S. Capitol on Nov. 19, 2024, in Washington, D.C.

Andrew Harnik / Getty Images


Sen. Ed Markey, a Massachusetts Democrat, derided the gender-affirming care restriction earlier this week, calling it “the product of a nationwide campaign against trans rights” and arguing that the legislation’s approval would mark “the first anti-LGBTQ law passed by Congress in decades.”

Still, the outcome of the vote was all but guaranteed after the Senate advanced the measure on Monday in a 83-12 procedural vote. 

Sen. Roger Wicker of Mississippi, the ranking Republican on the Senate Armed Services Committee, celebrated the NDAA’s “immense accomplishments,” including a 14.5% pay raise for junior service members and investments in recruitment capabilities. But he said Congress “missed an opportunity to strengthen the president-elect’s hand as he takes office in a precarious world situation.”

Wicker outlined that the Armed Services Committee proposed $25 billion for modernization programs, including for missile defense, ship building and counter-drone technology, saying “this should have been part of the bill today.”

Sen. Jack Reed, a Rhode Island Democrat who chairs the Armed Services Committee, called the legislation a “strong, forward looking bill that we can all be proud of.” But he said he “strongly” disagrees with the inclusion of the gender-affirming care provision, calling it a “misguided provision.” 

“I share many of my colleagues’ frustrations that the bill includes a provision that would prohibit gender-affirming health care for minors under certain circumstances,” Reed noted, adding that he voted against the provision in committee. “We will continue to work to ensure the health care rights of all military personnel and their dependents.”



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