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CBS News
06-08-2025
- Business
- CBS News
Will buying a home be more affordable this fall? Here's what lending experts predict.
Housing affordability is always a concern, but with mortgage rates high and inflation ticking back up recently, it's become increasingly top of mind for consumers. If these trends continue, it could send buyer demand further down — and home prices with it. If things improve, though, demand could rise, and home prices might climb even higher. Which is most likely to happen in the near term, though? We asked some experts about what they expect for housing affordability for the fall. Below, we'll break down their predictions and what next steps current homebuyers may want to take right now. Start by seeing what mortgage interest rate you could qualify for here. Lots of factors influence housing affordability, but one of the most important, at least this fall, will be mortgage rates. "The biggest factor that will change affordability will be the movement in interest rates, if there is any," says Mark Worthington, branch manager and home loan specialist at Churchill Mortgage. "If rates go down dramatically, affordability will increase for a short period of time. Once the demand rises enough with lower rates, then prices will likely rise and this will then negatively affect affordability." Are rates likely to fall, though? That depends on where you look. The Mortgage Bankers Association is forecasting the average 30-year mortgage rate to be at 6.7% by the end of the year — right around where it sits today. Fannie Mae forecasts a small drop in rates, with an average of 6.4% by year's end. "Mortgage rates are holding steady," says Debra Shultz, vice president of lending at CrossCountry Mortgage. "The Fed is expected to delay rate cuts until October 2025, keeping rates relatively steady through the fall." That might not sound like good news for most homebuyers, but experts say it's better than constantly up-and-down mortgage rates, which make it hard for consumers to make decisions. "I think the most important thing is rate stability — versus volatility," says Dana Bull, a real estate advisor with Compass in Massachusetts. "If rates are stable, buyers and sellers can make plans without feeling like the rug is about to be pulled out from under them." See what rates and terms are available to you here. Another big influencer on affordability is inventory — or how many homes are for sale at a given time. When inventory is high and buyers have lots of options, it creates seller competition and makes things more affordable. When for-sale homes are limited, it does the opposite, eroding affordability for buyers. Across the country, inventory is generally on the rise, which could help ease home prices overall. data shows for-sale inventory jumped almost 25% between July 2024 and July 2025, hitting its highest point since the pandemic. Still, that's overall data, and individual markets can vary quite a bit. "Everything this year is incredibly market- and pricepoint-specific," says Jennifer Beeston, executive vice president of national sales at Guaranteed Rate. "For instance, in Seattle we are already back to bidding wars, whereas in Dallas in the sub-$500,000 pricepoint, we have plenty of inventory to pick and choose from." Mortgage rates will also be a big determinant of where inventory goes. If mortgage rates drop, homeowners who currently have very low interest rates will be more likely to list their homes and buy new ones, unlocking a lot of pent-up inventory nationally. "The so-called 'lock‐in effect' still limits turnover," Shultz says. Data shows that home prices are still growing nationally — but the rate at which they're increasing is slowing down. Currently, the median home price is just under $411,000. "Prices are slowing but still high," Shultz says. "Most forecasts expect modest price growth of around 2 to 3% for the full year — or even slight declines in select markets." Fannie Mae's forecast shows price growth slowing down steadily through the end of 2026, though on the ground, it will depend on the specific market you're in. Again, mortgage rates will play in, too. If they stay high or even rise, that will reduce demand and potentially cause prices to drop. If rates drop a significant amount, home prices could tick back up again. "If mortgage rates drop enough — I would say below the 6% mark — we will see lots of competition among buyers, likely increasing prices due to pent-up market demand," says Brandi Wolff, a real estate agent at Guide Real Estate in Denver. "If mortgage rates stay relatively steady, then prices could see a slight decline." If you're contemplating selling and purchasing a new home, you're on both sides of the fence. With increased inventory and rates high, you might have a hard time selling your home, but then an easier time buying one. It all depends on the market, though. "As a move-up buyer, you want to get the most for the house you're selling and pay the least for the home you're buying," Beeston says. "This can only be accomplished if you are selling in a seller's market and buying in a buyer's' market. If you are buying in the same market you live in, odds are you are going to be making some adjustments." In July 2025, the typical home spent 58 days on the market, according to the data, which is up a full week from a year ago. That indicates waning buyer demand or excess inventory, and as a seller, it might mean cutting your listing price or offering other perks to get your home noticed. "As a seller in our current market, you absolutely must price your home correctly from the start," Wolff says. "Statistically, you're less likely to maximize your profits for your home in the end if you price it too high — due to having to significantly drop the price to attract a contract — than you would if you'd priced it right from the beginning." Forecasts aren't set in stone, and as conditions change, the trajectory for housing affordability can change, too. Keep an eye on mortgage rates, and talk to a real estate agent in your area to stay on top of pricing trends in your local market. And if you want to make your home purchase more affordable no matter where prices or rates go, consider negotiating seller concessions or a mortgage rate buydown with your lender. These can both reduce your costs as a homebuyer. You can also be choosier about the home you buy. Purchasing a fixer-upper, for instance, may offer a lower price than a more move-in-ready home. You can also look for homes that have been listed for a while. "Sellers tend to get more motivated when their home has been sitting on the market for more than 30 days," Bull says. "They may be willing to concede on price if your offer is otherwise compelling."
Yahoo
29-05-2025
- Business
- Yahoo
How to protect yourself from HELOC fraud
HELOC fraud is defined as someone stealing funds from an existing home equity line of credit or opening a new HELOC account in a homeowner's name for the purpose of withdrawing funds from it. Common scams include account takeovers, identity fraud, title fraud, and even the creation of counterfeit HELOC checks — all typically carried out via phishing or stolen data. Warning signs of HELOC fraud include unfamiliar transactions, missing statements or sudden increases in your HELOC balance or minimum payments. You can protect yourself from fraud by monitoring your account, setting up account alerts, and reporting any suspicious activity or draws promptly. Home equity lines of credit (HELOCs) are a common way for homeowners to borrow against the equity in their homes. But while HELOCs offer flexibility and relatively low interest rates for homeowners, they're also becoming a lucrative target for thieves. The reason? A HELOC can offer hundreds of thousands of dollars, borrowed against the equity that homeowners have accumulated in their property. And they have considerable stakes to draw from these days: In fact, according to a recent Intercontinental Exchange (ICE) 'Mortgage Monitor Report,' the average mortgage-holding homeowner currently has about $203,000 worth of tappable home equity. The size of HELOC credit lines and balances has grown steadily over the past year, too. With the rise of mobile banking and online document storage, the risk of HELOC malfeasance has also increased. But by understanding how it happens, and the precautions you should be taking, you'll be one step ahead of the game in protecting your home from one of the newest trends in financial fraud. HELOC fraud occurs when someone gains access to a homeowner's line of credit, either by stealing funds from an existing HELOC or by impersonating the homeowner to open a new HELOC. 'Identity theft is one way we have seen HELOC fraud committed, where a person obtains information about a homeowner through nefarious means, and then forges documents to obtain a loan in the homeowner's name,' says Rose Krieger, senior home loan specialist at Churchill Mortgage. Unlike other forms of identity theft, someone stealing from your HELOC can easily fly under the radar, because of the nature in which the money is typically borrowed: slowly over many weeks or months, rather than all at once. People often make only occasional draws from their HELOC, so they don't monitor the account frequently. Since draws also tend to be sizable, it's unlikely that a lender would flag an unusually large one, as it might do with a credit card. And since HELOC interest rates regularly fluctuate, an increase in a minimum monthly payment (caused by the fraudster's draw) might not seem out of the ordinary. In other cases, scammers may use forged documents or stolen info to open a HELOC in someone's name, cash out quickly, and disappear before either the lender or borrower realizes what's happened. It's unfortunate, but many details about a home, the homeowner and liens on a home (like a mortgage or home equity loan) are a matter of public record. HELOC fraud can take several forms. The most common methods include: 1. Account takeover fraud: Someone gains access to a homeowner's existing HELOC account through phishing e-mails or texts, data breaches, or stolen credentials (like your HELOC checks or debit cards). Once inside, they can transfer funds, change contact info, or request checks and wire transfers, all without the homeowner's knowledge. 2. Synthetic identity fraud: Scammers can use a combination of real and fake information to create a new identity and apply for a HELOC in a homeowner's name. This often involves using stolen Social Security numbers and fabricated documents to trick lenders. Last fall, several people in Orange County, Calif. were arrested and charged with stealing homeowners' identities to obtain over $500,000 in HELOC funds – money secured by the identity-theft victims' actual homes. 3. Title fraud: In more rare and sophisticated cases, a scammer may forge documents to transfer the title of your home into their name, then take out a HELOC as if they were the owner (which, on paper, they now are). While less common, this type of fraud can be more difficult to resolve. 4. Counterfeit HELOC checks: Another growing trend involves scammers creating fake checks tied to legitimate HELOC accounts. They do this by using information available in public records – like the homeowner's name, address, HELOC lender and HELOC account number – to forge convincing-looking checks, which they then use to draw on the line of credit. HELOC fraud can be difficult to detect, but there are some red flags homeowners should watch for. If you notice any of the following, it could be a sign someone has hacked your existing HELOC and is attempting to withdraw funds, or has tried to open one in your name: Unrecognized draws or transactions on your HELOC account Statements or notifications you don't recognize Missing statements or sudden changes to contact preferences (including mailing or email address) A sudden drop in your credit score A sudden increase in your outstanding HELOC balance/monthly minimum payment Lender notices regarding a HELOC account you didn't open If you believe that your existing HELOC has been compromised or that a HELOC has been opened in your name, acting quickly is your best line of defense. Here's what to do: 1. Contact your lender immediatelyNotify your bank or HELOC lender as soon as you notice suspicious activity. Review the activity with them and ask to have your account frozen or suspended to prevent further withdrawals. 2. File a police reportReport the fraud to your local police department. A police report can help support your case when dealing with the lender, credit bureaus or county clerk offices later on. 3. Report identity theft to the FTCGo to to file a complaint with the Federal Trade Commission. The FTC provides a recovery plan and documentation to help you dispute any fraudulent accounts created in your name. 4. Contact credit bureausNotify all three credit bureaus and place a fraud alert or credit freeze on your accounts. This will help prevent any additional fraudulent accounts from being opened in your name. 5. Check your property titleIf you suspect title fraud or deed theft, check your county recorder's office to verify the property title is still in your name. If it's been changed, you may need to involve a real estate attorney to resolve the issue. 6. Work with your lenderDepending on the nature of the fraud and how quickly it was reported, your lender may be able to recover some or all of your stolen funds. You should be prepared to provide documentation like a police report to support your claim. One bit of good news: You're not on the hook to repay the missing money, or any interest on it. As open-ended lines of credit, HELOCs are covered by the Fair Credit Billing Act of 1974 (part of the Truth in Lending Act), which limits your liability for fraudulent charges. But you must report them promptly. First of all, keep in a safe place any account-related paperwork and borrowing tools, like checks or cards (some lenders, like PNC, issue both). These tools make it more convenient for you to access your HELOC funds, but unfortunately make it easier for fraudsters, too. In addition to monitoring your account and using tools like credit freezes and two-factor authentication, it's essential to be cautious about unsolicited communication. Scammers often impersonate lenders by sending emails, texts, or even initiating phone calls that seem legitimate. 'To protect yourself, it's important to regularly check your credit report to ensure all debts are accurate,' says Krieger. 'Be mindful of calls and text messages claiming to be [from] your financial institution — remember that your financial institution will never call you and ask for your full Social Security number, account number or codes sent to your phone.' These messages may claim there's an issue with your HELOC account or ask you to verify personal information using a link or a passcode. If you receive an unexpected request (even one that looks like it's from your bank), don't respond right away – directly to that message, at least. 'When in doubt, hang up and call your financial institution, or go in personally,' Krieger advises. Also, check your account on the lender's website or its app yourself; if a message is legitimate, it may appear when you log in. HELOC fraud is a real and growing concern. While there are legal safeguards and lenders have security measures in place, protecting yyour home equity and HELOC funds in today's day and age ultimately starts with you. It requires a healthy dose of vigilance — and skepticism. Keep in mind that lenders will never ask you to confirm your identity by clicking a link in a text or providing personal information via an unsecured channel. By monitoring your account and statements, keeping checks and cards secure, and staying alert, you can reduce your risk and keep your home equity funds safe. And if fraud does happen, acting quickly can help you limit the damage and ensure you're able to fully recover your account and any stolen funds.
Yahoo
03-05-2025
- Health
- Yahoo
I'm a successful businessman who hid my mental health struggles. Not anymore.
As a businessman, author, and someone deeply involved in Nashville's professional and social circles, I've spent years cultivating relationships, building companies, and giving back to my community. But for a long time, I was fighting a battle no one could see. For years, I battled severe depression and anxiety. From the outside, everything looked fine — successful career, loving family — but inside, I was unraveling. At my lowest point, I questioned whether life was worth living. Now, I share my story so others know they're not alone. I want people — especially those who seem like they've 'got it all together' —to know it's okay to not be okay. There is strength in vulnerability, and healing begins with conversation. These days, I travel the country speaking about mental wellness — how small, honest actions can lead to real healing. A check-in, a conversation, a shared story — these moments can save a life. I've learned that the most important relationship we have isn't with clients, colleagues, or communities — it's with ourselves. And when we take care of our mental health, everything else begins to align. This Mental Health Awareness Month, and every month, let's keep talking. Let's keep listening. And let's remind each other that hope is real. Beyond his advocacy work, Bob Jacobs has spent over 15 years working with Churchill Mortgage, where he serves as Director of Affiliate Business and is a Partner in Champion Title Ventures. He is also the author of Rack 'Em Up and Win: Tips to Building Successful Business Relationships and serves on multiple industry and community boards. This article originally appeared on Nashville Tennessean: Mental Health Awareness Month is a time to talk and listen | Opinion
CBS News
22-04-2025
- Business
- CBS News
How do changing HELOC rates impact current borrowers?
Interest rates on home equity lines of credit ( HELOCs ) have been in a steady decline since the fall of last year. In fact, rates are now averaging around 8% — down significantly from their almost 10% peak seen in September of last year. But home equity borrowing rates won't always be falling. While these are positive trends for existing HELOC holders and new borrowers right now, the tides could turn, and HELOCs' changing rates could pose a problem for consumers. What exactly does the volatility of HELOC rates mean for borrowers? And how should that inform your decision to take out a HELOC — or avoid one? Start comparing today's top home equity borrowing rates . Here's what experts say about how changing HELOC rates can impact current borrowers. With HELOCs, this is the best-case scenario — and it's what consumers are seeing right now: Declining rates and, subsequently, declining monthly payments. It's not always a one-for-one decline. HELOC rates are typically based on the prime rate, plus a margin, which can vary depending on your lender and financial profile. They also don't all adjust at the same pace. "There are a lot of different HELOC programs. Some float monthly, meaning your rate can adjust every month. Some only adjust periodically, such as quarterly, and some are fixed for up to 30 years," Mason Whitehead, producing branch manager at Churchill Mortgage in Dallas, explains. In that latter scenario (with a fixed-rate HELOC), falling HELOC rates wouldn't impact your rate or payment at all. "It's important to understand what type of fixed period, if any, you are getting," Whitehead says. "Know how often it will adjust." Compare your home equity borrowing options online now . Unfortunately, HELOC rates can also rise , which would send the rate and payment up on new and existing variable-rate HELOCs, too. The good news is that despite what the prime rate does, HELOC rates can't jump substantially in any one period. Lenders will set rate caps for your loan, establishing a maximum increase in each adjustment period and a maximum rate for the entire HELOC term. "It's possible that monthly payments could increase should market conditions change," says Chuck Bowman, retail and business banking division director at Amegy Bank of Texas. "When considering taking on a HELOC, it's important to be aware of rate caps, which set a limit on how high a borrower's interest rate can go. Rate caps can offer some protection against higher payments." For example, your rate may be able to increase by no more than one percentage point per year and five percentage points across the full term. These numbers should be detailed in your loan documents, so use them to calculate what your absolute maximum payment could be and see how that fits in with your budget. "The key with HELOCs — and essentially any debt — is to understand the worst-case scenario and make sure your budget allows that," Whitehead says. Since HELOC rates can rise or fall, changing your monthly payment with them, their biggest risk lies in their unpredictability. "HELOC borrowers are typically notified of rate changes through their monthly statements," Bowman says. "This means you find out about the new interest rate and upcoming payment each month. While this keeps borrowers informed, it doesn't always give ample time to adjust budgets." To make sure you're protected, run the numbers and figure out the highest payment you might owe — and make sure you can still handle that. You should also have some emergency savings on hand just in case. "Typically, the rates can change month to month which means the notification period on a rate change is 15 to 30 days," says Jason Fannon, a senior partner and certified financial planner at Cornerstone Financial Services in Novi, Mich. "This is difficult to plan for, which is why the borrower needs to run several scenarios — at higher interest rates — prior to obtaining the loan." Another option is to choose a lender that offers fixed-rate HELOCs or HELOCs with fixed-rate lock options. These allow you to fix the interest rate on a portion of your credit line at varying intervals throughout the loan term. This can be particularly helpful if you plan to use a large chunk of your credit line (which would mean even bigger fluctuations in payments if rates change). "If you plan to take a large advance on the line of credit, then how long do you expect to take to pay it back?" asks Tom Parrish, managing director of consumer lending product management at BMO Bank. "If it's over a long period of time, you may want to consider locking in a fixed rate and fixed payment to minimize any interest rate risk." You can also explore home equity loans , which have fixed interest rates (even though they may be slightly higher than HELOC rates right now). If you're not sure which option is best for your needs, talk to a mortgage professional for advice.
CBS News
21-04-2025
- Business
- CBS News
Are variable HELOC rates too risky now? Experts weigh in
Home equity lines of credit ( HELOCs ) are quickly becoming one of the most affordable ways homeowners can borrow money these days. Not only have HELOC rates fallen overall since the start of 2025, but they're also down considerably over the last year or so , falling from averages near 10% to the 8% point they sit at today. These lower rates have benefitted new borrowers and existing HELOC holders alike — allowing both to reduce their interest and monthly payments with every dip that occurs. But as the old adage says, "What goes up, must come down." And with HELOCs' variable rates , that means HELOC costs could rise, too. Does this make them too risky to take on? Compare today's top home equity borrowing options online now . Here's when experts say they might be too risky — and when you're typically good to go. Since HELOCs have variable rates, when overall interest rates change, so do the rates on existing HELOCs. That can be good in times like this — or if markets expect HELOC rates to fall further in the future. But those trends can be hard to predict. So to borrow a HELOC safely , experts say you'll want to understand the nitty-gritty details of your loan first — specifically, its rate caps, which determine how much your rate can rise or fall in any given time and over the life of your HELOC. "You need to know what the payment will look like if you fully draw out — or use all of — the HELOC at the maximum possible rate," says Mason Whitehead, producing branch manager at Churchill Mortgage in Dallas. "Understanding what the payment would be in that worst-case scenario is important." If you can handle that absolute maximum payment, then a HELOC could be safe for you to take out. Having "stable income, a low debt-to-income ratio and adequate savings reserves" can make a HELOC a safer bet, too, according to Chuck Bowman, retail and business banking division director at Amegy Bank of Texas. "Build an emergency fund to cover higher payments if interest rates rise unexpectedly," Bowman says. "Aim to save enough to cover a few months' worth of HELOC payments, and regularly monitor interest rates and market trends to anticipate potential increases." Find out how much a HELOC could cost you today . If you have unpredictable income, lots of debt or are low on savings, a HELOC with a variable interest rate is likely too big a risk for your finances, experts say. "A variable-rate HELOC can be risky, especially if you have a high debt-to-income ratio, meaning you already owe a lot compared to your income," Bowman says. "If your job situation is uncertain or your income varies greatly, managing variable payments can also be a challenge." Additionally, if you're on the cusp of qualifying for a HELOC , "that can be a big risk," too, Whitehead says. "What I tell a lot of clients is, 'Just because you can qualify, doesn't mean you should,'" Whitehead says. "Consider what the payment could be if the rate went up 2%, just to be sure you are okay with what that payment looks like." How you plan to use the HELOC plays in, too. For instance, using your HELOC funds to improve your home and add value to it is less risky than using the money to pay off debts — particularly if you haven't tackled the issues that led to racking up debt in the first place. "A big risk comes when you use a HELOC to pay off consumer debts, like credit cards or personal loans," Whitehead says. "Trading one debt for another may lower the monthly payment, but it's the behavior that has to change or else you will just end up back in credit card debt again — and you'll also have a HELOC." If you do opt to move forward with a HELOC, make sure you run the numbers. Know what your absolute highest payment could be, and have a plan for how you'd handle that from a budget standpoint. "Plan for rate changes in advance — prior to borrowing — and model out increases to ensure you can afford the loan at higher interest rates," says Jason Fannon, a senior partner and certified financial planner at Cornerstone Financial Services in Novi, Mich. "The planning needs be completed in advance." And if you want to reduce your risk even more, shop around for a fixed-rate HELOC. Some lenders offer these or, in many cases, you may be allowed to secure a fixed rate on a portion of your credit line, which can reduce your exposure to rate and payment fluctuations, too. There are also home equity loans , which typically come with a fixed interest rate , or you can explore a cash-out refinance if the conditions are right. Talk to a mortgage professional if you're not sure which is the right move for you.
