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Hurricane Rafael grows into a Category 2 storm as it bears down on Cuba
San Juan, Puerto Rico — Hurricane Rafael swelled into a Category 2 storm early Wednesday as it swirled past the Cayman Islands, and it was forecast to rapidly intensify before making landfall later in the day in western Cuba. It was another stroke of bad news for Cuba, which has been struggling with blackouts while recovering from another hurricane two weeks ago that killed at least six people in the eastern part of the island.
The storm was located about 90 miles east-southeast of the Isle of Youth, and around 160 miles south-southeast of Havana as of 7 a.m. Eastern on Wednesday. Packing maximum sustained winds of 100 mph, Rafael had become a Category 2 storm.
It was moving northwest at 14 mph, according to the National Hurricane Center in Miami. Forecasters warned that Rafael was expected to slam into Cuba on Wednesday after dumping rain on Jamaica and the Cayman Islands on Tuesday. The center warned of floods, storm surges and mudslides.
NOAA/National Hurricane Center
The U.S. State Department issued an advisory for Cuba on Tuesday afternoon, offering departure flights to non-essential staff and American citizens, and advising others to “reconsider travel to Cuba due to the potential impact of Tropical Storm Rafael,” before the storm grew into a hurricane.
On Tuesday morning, the Cuban Civil Defense called on Cubans to prepare as soon as possible, because when the storm makes landfall “it’s important to stay where you are.” The day before, authorities said they had issued an evacuation order for 37,000 people in far eastern Cuba, in the province of Guantanamo, due to bad weather.
A hurricane warning that had been in effect Tuesday for the Cayman Islands was dropped for the biggest of the islands Wednesday. The measure remained in effect for Little Cayman and Cayman Brac, along with the Cuban provinces of Pinar del Rio, Artemisa, La Habana, Mayabeque, Matanzas, and the Isle of Youth.
NOAA/National Hurricane Center
A tropical storm warning was in effect for a handful of other Cuban provinces, as well as the lower and middle Florida Keys from Key West to west of the Channel 5 Bridge, and Dry Tortugas. The warning was lifted in Jamaica after the storm passed by the western coast.
Rafael on Tuesday knocked out power in Jamaica and unleashed flooding and landslides.
The Jamaica Public Service, the island’s electricity provider, said in a statement late Tuesday that impassable roads were preventing crews from restoring power in some areas.
Meanwhile, crews in Little Cayman and Cayman Brac were expected to fan out early Wednesday to assess damage after a direct hit late Tuesday. Power outages were reported across the Cayman Islands, and schools remained closed on Wednesday.
“While conditions have improved on Grand Cayman, residents are advised to exercise extreme caution on the roads and near coastlines as rough seas and residual flooding risks may persist,” the government said in a statement.
Forecasters warned Rafael would unleash heavy rains across the western Caribbean that could lead to flooding and mudslides in parts of Cuba and the Cayman Islands.
YAMIL LAGE/AFP/Getty
Heavy rainfall also was expected to spread north into Florida and nearby areas of the southeast U.S. during the middle to late part of the week. The Hurricane Center predicted storm surges in Florida could reach 1 to 3 feet in Dry Tortugas and 1 to 2 feet in the Lower Florida Keys. A few tornadoes also were expected Wednesday over the Keys and southwestern Florida.
Rafael is the 17th named storm of the season.
The National Oceanic and Atmospheric Administration predicted the 2024 hurricane season was likely to be well above average, with between 17 and 25 named storms. The forecast called for as many as 13 hurricanes and four major hurricanes.
An average Atlantic hurricane season produces 14 named storms, seven of them hurricanes and three major hurricanes.
Getty Images
When it comes to borrowing money, timing is everything. Unfortunately, the last two years haven’t been ideal times for many Americans to act. As inflation surged and interest rates rose, borrowing became much more expensive, whether with a mortgage, personal loan or even by swiping a credit card. But inflation has now dropped from around 9% in June 2022 to just over 2% in September 2024. And the first interest rate cut since 2020 was issued just weeks ago, with the next cut to the federal funds rate expected to be issued this week.
While that cut is expected to be in the form of just 25 basis points, it will offer additional relief for borrowers, especially those who withdraw from their home equity with a line of credit (HELOC). Accordingly, many homeowners may be wondering about the timely benefits of opening a HELOC. Below, we’ll break down three reasons why it may be worth opening this week.
Start by seeing what HELOC rate you could qualify for here.
Should you open a HELOC this week?
Here are three big reasons why it’s worth opening a HELOC this week:
You can secure a lower rate
While the Federal Reserve doesn’t directly determine home equity borrowing rates, it can greatly affect them, arguably more so than it would for products like mortgages, for example. So if the Fed issues a rate cut after its current meeting on November 7, variable rates on HELOCs could potentially adjust downward, too. That said, some lenders may have already priced in this predicted cut, so you may not see a significant difference between what’s being offered now and what could be offered by the end of the week. It’s important, then, to shop around to see where you can find the very lowest HELOC rate.
You can position yourself for an even lower rate in December
HELOC interest rates change monthly for borrowers. So if you open one this week you can likely position yourself for an even lower rate in December, as most expect the Fed to continue its rate-cutting campaign in the final month of the year. Assuming the Fed cuts the federal funds rate to a range between 4.50% to 4.75% this week, the CME Group’s FedWatch tool pegs another cut to a range between 4.25% and 4.50% at more than 67% right now. By opening a HELOC this week or this month, then, you’ll likely benefit from an immediate drop in your rate in December.
You can still qualify for the tax deduction
Even with interest rates falling on home equity products, borrowers who intend to use them for home repairs and renovations shouldn’t worry too much. That’s because interest on both home equity loans and HELOC is tax-deductible if used for eligible home projects. That said, the window of opportunity to utilize this deduction for 2024 is quickly approaching with less than eight weeks left in the year. So if you intend to use a HELOC for these purposes, it’s smart to act promptly. Otherwise, you’ll wind up delaying this critical tax deduction until it’s time to file your return again in 2026.
The bottom line
While it’s impossible to time your borrowing actions perfectly, there are multiple reasons why borrowing with a HELOC this week could be advantageous. With a rate that’s set to potentially cool immediately — and with expectations that it will continue to decline in December — many homeowners would benefit from opening a HELOC now. Plus, by acting promptly, they’ll still maintain their ability to deduct the interest paid on the line of credit when they file their taxes in the spring (if they use it for eligible purposes). That said, the home serves as collateral in these unique borrowing circumstances, so homeowners will need to make sure that they can comfortably repay all that they’ve deducted to avoid losing their home in the process.
Have more HELOC questions? Learn more here today.
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