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Why you shouldn’t wait for home equity loan rates to drop any further

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Waiting for home equity loan interest rates to fall could be a mistake.

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The long-awaited cut to the federal funds rate was issued in September. After years of rate hikes and higher borrowing costs, the Federal Reserve finally cut its benchmark rate to a range between 4.75% and 5%. That was largely due to a cooling in the inflation rate which, if it continues, could lead to additional rate cuts in November and December, too. While this is a benefit for borrowers, expectations for substantial relief should be measured, particularly for those looking to borrow from their home equity.

In recent years, many have chosen home equity loans and home equity lines of credit (HELOCs) as their cost-effective borrowing preference. But waiting for interest rates to fall further before acting could prove to be an expensive mistake. Below, we’ll detail three reasons why homeowners shouldn’t wait for home equity loan rates to drop further.

Start by seeing how low of a home equity loan rate you could secure here.

Why you shouldn’t wait for home equity loan rates to drop further

Are you ready to borrow from your home equity but aren’t sure if you should act or wait? Here are three major reasons why you shouldn’t wait for home equity loan rates to fall any further:

Rate declines will be gradual

The average home equity loan interest rate as of October 2 is 8.39%. That’s down from the 8.75% it was sitting at in the spring, but not in a major way. That 0.36% reduction, after all, is after a half a percentage rate cut was already issued, underlining the gradual (and, some would argue, slow) pace in which home equity loan rates are declining. While rates are expected to fall in the weeks and months ahead, they’re not expected to drop by a dramatic extent. Plus, if any new economic data released in October or November proves problematic, rate cuts could be paused as a response. So don’t wait for that to happen.

Get started with a home equity loan now.

Your financial needs can’t wait

If you’re seriously considering tapping into your home equity, which is likely one of your biggest financial investments, then chances are high that you need money now. If this is the case, your financial needs may not be able to be delayed long enough – nor should they – to secure an interest rate that’s just a few basis points lower than what you can already get right now. So if you’re looking for a home equity loan to consolidate credit card debt, for example, which is currently hovering near record rates, it makes sense to open a home equity loan now to do so. 

You’ll miss this year’s tax deduction

Interest paid on a home equity loan is tax deductible if the borrower uses the funds for qualifying home repairs or renovations. So if you’re planning on using your home equity loan for these reasons this fall it makes sense to act now. If you wait until 2025, you’ll then need to wait until 2026 to get this tax deduction. But if you open a home equity loan in the final months of 2024 – and use a portion of it – you’ll be eligible to write off that interest when you file your tax return in the spring.

The bottom line

The decision to wait for interest rates to fall is always a precarious one. This is especially true when tapping into your home equity. Because rate declines are expected to be gradual, and because your current financial needs are likely urgent, it makes sense to be proactive now. Plus, if you wait, you’ll delay what could be a substantial tax deduction. So weigh the costs of waiting versus the benefits of acting now. For many, it may be beneficial to get started with a home equity loan today.

Have more questions? Learn more about your best home equity loan options here.



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Social Security Fairness Act passes U.S. Senate

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Legislation to expand Social Security benefits to millions of Americans passed the U.S. Senate early Saturday and is now headed to the desk of President Joe Biden, who is expected to sign the measure into law.

Senators voted 76-20 for the Social Security Fairness Act, which would eliminate two federal policies that prevent nearly 3 million people, including police officers, firefighters, postal workers, teachers and others with a public pension, from collecting their full Social Security benefits. The legislation has been decades in the making, as the Senate held its first hearings into the policies in 2003. 

“The Senate finally corrects a 50-year mistake,” proclaimed Senate Majority Leader Chuck Schumer, a Democrat from New York, after senators approved the legislation at 12:15 a.m. Saturday.

The bill’s passage is “a monumental victory for millions of public service workers who have been denied the full benefits they’ve rightfully earned,” said Shannon Benton, executive director for the Senior Citizens League, which advocates for retirees and which has long pushed for the expansion of Social Security benefits. “This legislation finally restores fairness to the system and ensures the hard work of teachers, first responders and countless public employees is truly recognized.”

The vote came down to the wire, as the Senate looked to wrap up its current session. Senators rejected four amendments and a budgetary point of order late Friday night that would have derailed the measure, given the small window of time left to pass it. 


Some seniors shut out of full Social Security benefits

02:20

Vice President-elect JD Vance of Ohio was among the 24 Republican senators to join 49 Democrats to advance the measure in an initial procedural vote that took place Wednesday.

“Social Security is a bedrock of our middle class. You pay into it for 40 quarters, you earned it, it should be there when you retire,” Ohio Senator Sherrod Brown, a Democrat who lost his seat in the November election, told the chamber ahead of Wednesday’s vote. “All these workers are asking for is for what they earned.” 

What is the Social Security Fairness Act?

The Social Security Fairness Act would repeal two federal policies — the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO) — that reduce Social Security payments to nearly 3 million retirees. 

That includes those who also collect pensions from state and federal jobs that aren’t covered by Social Security, including teachers, police officers and U.S. postal workers. The bill would also end a second provision that reduces Social Security benefits for those workers’ surviving spouses and family members. The WEP impacts about 2 million Social Security beneficiaries and the GPO nearly 800,000 retirees.

The measure, which passed the House in November, had 62 cosponsors when it was introduced in the Senate last year. Yet the bill’s bipartisan support eroded in recent days, with some Republican lawmakers voicing doubts due to its cost. According to the Congressional Budget Office, the proposed legislation would add a projected $195 billion to federal deficits over a decade. 

Without Senate approval, the bill’s fate would have ended with the current session of Congress and would have needed to be re-introduced in the next Congress. 



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Saturday is the winter solstice and 2024’s shortest day. Here’s what to know about the official start of winter.

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The 2024 winter solstice, the shortest day of the year, happens on Saturday, Dec. 21, in the Northern Hemisphere. The celestial event signifies the first day of winter, astronomically. 

What is the winter solstice?

The winter solstice is the day each year that has the shortest period of daylight between sunrise and sunset, and therefore the longest night. It happens when the sun is directly above the Tropic of Capricorn, a line of latitude that circles the globe south of the equator, the National Weather Service explains. 

The farther north you are, the shorter the day will be, and in the Arctic Circle, the sun won’t rise at all. 

How is the day of the winter solstice determined?

The winter solstice occurs because of the Earth’s tilt as it rotates around the sun. 

When the Northern Hemisphere tilts away from the sun, the nights last longer. The longest night happens on the solstice because the hemisphere is in its furthest position from the sun. That occurs each year on Dec. 21 or 22. 

This year, it falls on Dec. 21 at 4:21 a.m ET, to be precise.

On the summer solstice, when the northern tilt is closest to the sun, we have the longest day, usually June 20 or 21.

Illustration of the Earth's tilt in different seasons
This illustration from the National Weather Service shows the tilt and rotation of the Earth on the winter and summer solstices, as well as the autumnal and vernal equinox marking the beginning of fall and spring.

National Weather Service


The solstices are not always exactly on the 21st every year because the earth’s rotation around the sun is 365.25 days, instead of 365 even. 

Will days start getting longer after the winter solstice?

Yes. Each day after the solstice, we get one minute more of sunlight. It doesn’t sound like much, but after just two months, or around 60 days, we’ll be seeing about an hour more of sunlight. 

When will winter officially be over in 2025?

The meteorological winter ends on March 20, 2025. Then, spring will last until June 20, when the summer solstice arrives. 

How is the winter solstice celebrated around the world?

Nations and cultures around the world have celebrated the solstice since ancient times with varying rituals and traditions. The influence of those solstice traditions can still be seen in our celebrations of holidays like Christmas and Hanukkah, Britannica notes.

The ancient Roman Saturnalia festival celebrated the end of the planting season and has close ties with modern-day Christmas. It honored Saturn, the god of harvest and farming. The multiple-day affair had lots of food, games and celebrations. Presents were given to children and the poor, and slaves were allowed to stop working. 

Gatherings are held every year at Stonehenge, a monumental circle of massive stones in England that dates back about 5,000 years. The origins of Stonehenge are shrouded in mystery, but it was built to align with the sun on solstice days

Winter Solstice at Stonehenge
People gather at sunrise for the winter solstice celebrations at the Stonehenge prehistoric monument on Salisbury Plain in Wiltshire, England, on Dec. 22, 2021.

Andrew Matthews/PA Images via Getty Images


The Hopi, a Native American tribe in the northern Arizona area, celebrate the winter solstice with dancing, purification and sometimes gift-giving. A sacred ritual known as the Soyal Ceremony marks the annual milestone.

In Peru, people honor the return of the sun god on the winter solstice. The ancient tradition would be to hold sacrificial ceremonies, but today, people hold mock sacrifices to celebrate. Because Peru is in the Southern Hemisphere, their winter solstice happens in June, when the Northern Hemisphere is marking its summer solstice.

Scandinavia celebrates St. Lucia’s Day, a festival of lights. 

The “arrival of winter,” or Dong Zhi, is a Chinese festival where family gathers to celebrate the year so far. Traditional foods include tang yuan, sweet rice balls with a black sesame filling. It’s believed to have its origins in post-harvest celebrations. 

Researchers stationed in in Antarctica even have their own traditions, which may include an icy plunge into the polar waters. They celebrate “midwinter” with festive meals, movies and sometimes homemade gifts.



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