Latest news with #GregMcBride
Yahoo
29-05-2025
- Business
- Yahoo
HELOC rates retreat, while home equity loans rise a bit
After rising for the last few weeks, the average rate on a $30,000 home equity line of credit (HELOC) reversed course, falling six basis points to 8.14 percent, according to Bankrate's national survey of lenders. Meanwhile, the average rate on the $30,000 home equity loan at 8.24 percent was up a bit, but remained near its lowest level this year. Longer-term loans were virtually flat. Even though rates are once again above 8 percent, now is a good time for prospective borrowers to consider a HELOC, says Michael Brennan, president of Nationwide Mortgage Bankers, a lender based in New York. 'Waiting around for rate changes is a fool's errand if you're looking to borrow right now, especially with home equity currently at an all-time high in the U.S. HELOCs are a smarter way to pay off unexpected expenses, finance home repairs, or consolidate debt at a much lower rate than a credit card. You just have to be smart about not borrowing more than you need.' Current 4 weeks ago One year ago 52-week average 52-week low HELOC 8.14% 7.95% 9.16% 8.63% 7.90% 5-year home equity loan 8.24% 8.36% 8.61% 8.44% 8.23% 10-year home equity loan 8.39% 8.51% 8.77% 8.57% 8.38% 15-year home equity loan 8.32% 8.42% 8.75% 8.52% 8.32% Rates on HELOCs and home equity loans have been driven by two primary factors: lender competition for the lowest-for-a-limited-time terms and the Federal Reserve's actions. The Fed especially impacts the cost of variable-rate products, including HELOCs. HELOCs and home equity loans have fallen substantially from the highs they hit at the beginning of 2024, with HELOC rates in particular reaching lows not seen since 2023. Bankrate Chief Financial Analyst Greg McBride forecasts that rates will continue to decline in 2025 — especially those on HELOCs, potentially to their lowest level in three years. Learn more: How the Federal Reserve affects HELOCs and home equity loans Because HELOCs and home equity loans use your home as collateral, their rates tend to be much less expensive — more akin to current mortgage rates — than the interest charged on credit cards or personal loans, which aren't secured. Average rate HELOC 8.14% Home equity loan 8.24% Credit card 20.12% Personal loan 12.58% Of course, the individualized offer you receive on a particular HELOC or new home equity loan reflects additional factors like your creditworthiness. Then there's the value of your home and your ownership stake. Lenders generally limit all your home-based loans (including your mortgage) to a maximum 80 to 85 percent of your home's worth. Even if you are able to secure a low rate from a lender, as Ted Rossman, senior industry analyst at Bankrate, notes, home equity products are still relatively high-cost debt.'Three years ago, the average HELOC rate was below 4 percent,' Rossman says. 'I just wouldn't be in a rush to borrow $50,000 for a home renovation at 8 percent if there's a chance you might regret it, like if you lose your job, if you could have held off, if tariffs aren't as bad as feared, etc.' Home equity trends Real estate is Americans' second-most popular long-term investment, according to Bankrate's 2025 Long-Term Investment Survey. 56% of people who plan to take out a home equity loan will do so for home improvements, down from 73% in 2023, according to a survey by ServiceLink. Balances on HELOCs increased by $6 billion in the first quarter of 2025, the 12th straight quarterly increase, according to the latest data from the Federal Reserve Bank of New York. Nearly 30% of homeowners are considering taking out a HELOC or home equity loan in the next 12 months, a 7% increase compared to 2022, according to a survey by MeridianLink. Methodology The national survey of large lenders is conducted weekly. To conduct the National Average survey, Bankrate obtains rate information from the 10 largest banks and thrifts in 10 large U.S. markets. In the national survey, our Market Analysis team gathers rates and/or yields on banking deposits, loans and mortgages. We've conducted this survey in the same manner for more than 30 years, and because it's consistently done the way it is, it gives an accurate national apples-to-apples comparison. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
23-05-2025
- Business
- Yahoo
Home equity rates plunge; HELOCs climb for fourth straight week
A split decision for HELOC and home equity loan rates this week. The average rate on a $30,000 home equity line of credit rose six basis points to 8.20 percent, according to Bankrate's national survey of lenders. Conversely, home equity loan rates recorded their biggest drop of the year, with the average $30,000 home equity loan falling 13 basis points to 8.23 percent. The last time home equity loan rates were this affordable (and this close to HELOC rates) was back in May 2023. Bankrate Chief Financial Analyst Greg McBride attributes the current drop to 'the introduction of new offers, not because of existing lenders changing rates.' Current 4 weeks ago One year ago 52-week average 52-week low HELOC 8.20% 7.94% 9.17% 8.65% 7.90% 5-year home equity loan 8.23% 8.36% 8.61% 8.45% 8.23% 10-year home equity loan 8.38% 8.51% 8.77% 8.58% 8.38% 15-year home equity loan 8.32% 8.42% 8.75% 8.52% 8.32% Rates on HELOCs and home equity loans have been driven by two primary factors: lender competition for the lowest-for-a-limited-time terms and the Federal Reserve's actions. The Fed especially impacts the cost of variable-rate products, including HELOCs. HELOCs and home equity loans have fallen substantially from the highs they hit at the beginning of 2024, with HELOC rates in particular hitting lows not seen since 2023. McBride forecasts that rates will continue to decline in 2025 — especially those on HELOCs, potentially to their lowest level in three years. Learn more: How the Federal Reserve affects HELOCs and home equity loans Because HELOCs and home equity loans use your home as collateral, their rates tend to be much less expensive — more akin to current mortgage rates — than the interest charged on credit cards or personal loans, which aren't secured. Average rate HELOC 8.20% Home equity loan 8.23% Credit card 20.12% Personal loan 12.58% Of course, the individualized offer you receive on a particular HELOC or new home equity loan reflects additional factors like your creditworthiness. Then there's the value of your home and your ownership stake. Lenders generally limit all your home-based loans (including your mortgage) to a maximum 80 to 85 percent of your home's worth. Even if you are able to secure a low rate from a lender, as Ted Rossman, senior industry analyst at Bankrate, notes, home equity products are still relatively high-cost debt.'Three years ago, the average HELOC rate was below 4 percent,' Rossman says. 'I just wouldn't be in a rush to borrow $50,000 for a home renovation at 8 percent if there's a chance you might regret it, like if you lose your job, if you could have held off, if tariffs aren't as bad as feared, etc.' Home equity trends Real estate is Americans' second-most popular long-term investment, according to Bankrate's 2025 Long-Term Investment Survey. Nearly 30% of homeowners are considering taking out a HELOC or home equity loan in the next 12 months, a 7% increase compared to 2022, according to a survey by MeridianLink. Balances on HELOCs increased by $6 billion in the first quarter of 2025, the twelfth straight quarterly increase, according to the latest data from the Federal Reserve Bank of New York. More than half of the homeowners (54%) who remodeled their properties in 2024 used a home equity loan or line of credit to finance the project, according to a 2025 report by the National Association of Realtors. Methodology The national survey of large lenders is conducted weekly. To conduct the National Average survey, Bankrate obtains rate information from the 10 largest banks and thrifts in 10 large U.S. markets. In the national survey, our Market Analysis team gathers rates and/or yields on banking deposits, loans and mortgages. We've conducted this survey in the same manner for more than 30 years, and because it's consistently done the way it is, it gives an accurate national apples-to-apples comparison. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
16-05-2025
- Business
- Yahoo
HELOCs soar back above 8%
A big jump in HELOCs this week: The average rate on a $30,000 home equity line of credit rose 15 basis points to 8.14 percent, according to Bankrate's national survey of lenders (affected by increases among Midwestern institutions in particular). Meanwhile, home equity loan rates stayed virtually flat for the fourth straight week, with the average $30,000 home equity loan clocking in at 8.36 percent, holding at a low for 2025. Despite the recent HELOC rise, now is a good time for homeowners to tap into their equity, says Rich Martin, director of real estate lending solutions at Curinos, a data analytics firm based in New York. Credit card debt rising, home values climbing and most primary mortgage-holders sitting on rates at less than 5 percent: 'All support home equity products as a sound product for homeowners to leverage for their financing needs.' Current 4 weeks ago One year ago 52-week average 52-week low HELOC 8.14% 8.02% 9.17% 8.67% 7.90% 5-year home equity loan 8.36% 8.40% 8.66% 8.46% 8.35% 10-year home equity loan 8.52% 8.53% 8.79% 8.59% 8.46% 15-year home equity loan 8.42% 8.44% 8.79% 8.53% 8.37% Rates on HELOCs and home equity loans have been driven by two primary factors: lender competition for the lowest-for-a-limited-time terms and the Federal Reserve's actions. The Fed especially impacts the cost of variable-rate products, including HELOCs. HELOCs and home equity loans have fallen substantially from the highs they hit at the beginning of 2024, with HELOC rates in particular hitting lows not seen since 2023. Bankrate Chief Financial Analyst Greg McBride forecasts that rates will continue to decline in 2025 — especially those on HELOCs, potentially to their lowest level in three years. Learn more: How the Federal Reserve affects HELOCs and home equity loans Because HELOCs and home equity loans use your home as collateral, their rates tend to be much less expensive — more akin to current mortgage rates — than the interest charged on credit cards or personal loans, which aren't secured. Average rate HELOC 8.14% Home equity loan 8.36% Credit card 20.12% Personal loan 12.26% Of course, the individualized offer you receive on a particular HELOC or new home equity loan reflects additional factors like your creditworthiness. Then there's the value of your home and your ownership stake. Lenders generally limit all your home-based loans (including your mortgage) to a maximum 80 to 85 percent of your home's worth. Even if you are able to secure a low rate from a lender, as Ted Rossman, senior industry analyst at Bankrate, notes, home equity products are still relatively high-cost debt.'Three years ago, the average HELOC rate was below 4 percent,' Rossman says. 'I just wouldn't be in a rush to borrow $50,000 for a home renovation at 8 percent if there's a chance you might regret it, like if you lose your job, if you could have held off, if tariffs aren't as bad as feared, etc.' Home equity trends Real estate is the second-most popular long-term investment, according to Bankrate's 2025 Long-Term Investment Survey. Balances on HELOCs increased by $6 billion in the first quarter of 2025, the twelfth straight quarterly increase, according to latest data from the Federal Reserve Bank of New York. More than half of the homeowners (54%) who remodeled their properties in 2024 used a home equity loan or line of credit to finance the project, according to a 2025 report by the National Association of Realtors. More than half of baby boomers have $100,000 or more in home equity, the biggest stake among all generations, according to a 2025 report by ServiceLink. Methodology The national survey of large lenders is conducted weekly. To conduct the National Average survey, Bankrate obtains rate information from the 10 largest banks and thrifts in 10 large U.S. markets. In the national survey, our Market Analysis team gathers rates and/or yields on banking deposits, loans and mortgages. We've conducted this survey in the same manner for more than 30 years, and because it's consistently done the way it is, it gives an accurate national apples-to-apples comparison.
Yahoo
09-05-2025
- Business
- Yahoo
HELOC rates slightly up as Fed leaves rates the same
The rates on home equity lines of credit and loans didn't move much this week, with the average rate on a $30,000 home equity line of credit (HELOC) ticking up to 7.99 percent, according to Bankrate's national survey of lenders. Meanwhile, home equity loan rates stabilized, with the average $30,000 home equity loan at 8.36 percent — unchanged at a low for 2025. The Federal Reserve left its key benchmark interest rate unchanged this week, even as a recent inflation measure, the Personal Consumption Expenditures (PCE) index, came in closer to the central bank's 2 percent target. The Fed's continued pause reflects uncertainty around tariffs and the overall state of the economy, which contracted in the first quarter of 2025. HELOCs and home equity loans have fallen substantially from the highs reached at the beginning of 2024, with HELOC rates in particular hitting lows not seen since 2023. Bankrate Chief Financial Analyst Greg McBride forecasts that rates will continue to decline in 2025 — especially those on HELOCs, potentially to their lowest level in three years. Current 4 weeks ago One year ago 52-week average 52-week low HELOC 7.99% 8.00% 9.89% 8.70% 7.90% 5-year home equity loan 8.36% 8.38% 8.66% 8.46% 8.36% 10-year home equity loan 8.51% 8.52% 8.79% 8.59% 8.46% 15-year home equity loan 8.41% 8.42% 8.79% 8.54% 8.37% Rates on HELOCs and home equity loans have been driven by two primary factors: lender competition for the lowest-for-a-limited-time terms and the Federal Reserve's actions. The Fed especially impacts the cost of variable-rate products, including HELOCs. Learn more: How the Federal Reserve affects HELOCs and home equity loans However, because HELOCs and home equity loans are linked to your home as collateral, those rates tend to be much less expensive — more akin to current mortgage rates — than the interest charged on credit cards or personal loans, which aren't secured. Average rate HELOC 7.99% Home equity loan 8.36% Credit card 20.12% Personal loan 12.43% Of course, the individualized offer you receive on a particular HELOC or new home equity loan reflects additional factors like your creditworthiness. Then there's the value of your home and your ownership stake. Lenders generally limit all your home-based loans (including your mortgage) to a maximum 80 to 85 percent of your home's worth. Some borrowers might be more conservative in tapping their equity, since what's paramount is 'paying off the loan as fast as they can,' says Fred Bolstad, head of retail lending at U.S. Bank. 'For other people, it's all about [increasing] cash flow, and so they want to leverage their home to the fullest.' However, home equity products are still relatively high-cost debt, says Ted Rossman, senior industry analyst at Bankrate.'Three years ago, the average HELOC rate was below 4 percent,' Rossman says. 'I just wouldn't be in a rush to borrow $50,000 for a home renovation at 8 percent if there's a chance you might regret it, like if you lose your job, if you could have held off, if tariffs aren't as bad as feared, etc.' Home equity trends Real estate is the second-most popular long-term investment, according to Bankrate's 2025 Long-Term Investment Survey. More than half of the homeowners (54%) who remodeled their properties in 2024 used a home equity loan or line of credit to finance the project, according to a 2025 report by the National Association of Realtors. More than half of baby boomers have $100,000 or more in home equity, the biggest stake among all generations, according to a 2025 report by ServiceLink. Methodology The national survey of large lenders is conducted weekly. To conduct the National Average survey, Bankrate obtains rate information from the 10 largest banks and thrifts in 10 large U.S. markets. In the national survey, our Market Analysis team gathers rates and/or yields on banking deposits, loans and mortgages. We've conducted this survey in the same manner for more than 30 years, and because it's consistently done the way it is, it gives an accurate national apples-to-apples comparison. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
07-05-2025
- Business
- Yahoo
The Fed leaves its key interest rate as is. Here's how you can benefit
Treasuries: Treasury bills come in six different maturities, ranging from four to 52 weeks. Treasury notes mature in two, three, five, seven and 10 years. For money you've set aside for down-the-line expenses like a down payment or a year or more of living expenses if you're retiring soon, you can lock in advantageous rates now through: 'The average MMA yield at brick-and-mortar banks is a scant 0.41%, whereas the top-yielding, nationally available MMAs offered by online banks pay 10 times that amount, 4.1% or more. Ten times the return, while still being fully covered by federal deposit insurance and (offering you) access to the money when it is needed,' said Greg McBride, Bankrate's chief financial analyst. All bank savings rates are variable — so will fall if the Fed lowers its benchmark rate later this year. But, for now, many of the highest-yielding online savings accounts are paying between 4% and 4.4%, versus roughly 0.1% at the biggest banks like Chase, according to But for other money you want at the ready for less regular expenses, you'll get a much better rate in a high-yield savings account at an online FDIC-insured bank. FDIC-insured online high-yield savings accounts: Having a checking and savings account at one of the big brick-and-mortar banks is great for money needed to pay monthly bills, groceries and other everyday expenses. For money you're setting aside for emergencies or for near-term but not immediate cash-flow needs, consider using: So you'll want to look for returns on your cash that can match or beat that expectation. That's good news since economists believe inflation — which came in at 2.3% in March – will be going up this year as a result of the tariffs. By how much? Joe Brusuelas, chief economist at RSM US, told CNN's Alicia Wallace he expects both headline and core inflation to top 4% later this year. Since the Federal Reserve on Wednesday decided not to lower its key overnight lending rate, which affects interest rates throughout the economy, you can still earn a very healthy yield on your cash. That's why it's more important than ever to take control of what you can financially. That can start with making sure your savings are earning the best returns possible and are parked in the right types of accounts, given your needs and time horizon. The Trump administration's tariffs regime has disrupted markets , darkened the outlook for employers and businesses and hammered consumer sentiment . Story Continues If you buy one and hold it to maturity, you will lock in a rate of return that is higher than inflation while also preserving your principal. If you want to know how much you'll make by holding it to maturity, 'It's hard to beat,' said Ken Robinson, an Ohio-based certified financial planner who is part of Wealthramp, a network of experienced, fee-only advisers. As of Tuesday evening on Treasury bills were offering average yields ranging from a low of 3.88% to a high of 4.33%, while Treasury note yields ranged from 3.78% to 4.28%. Interest paid on Treasuries is exempt from state and local income taxes, so may be a good option if you live in a high-tax area. Know, though, that if you sell a Treasury before it matures, that can trigger a capital gain or loss on the price you get for it. AAA-rated municipal bonds: The tax advantages of high-quality municipal bonds are particularly favorable for those in high-tax states, and especially people in the top income tax brackets. The interest you earn on munis, which are issued by state and local governments, is exempt from federal income tax. It also may be exempt from state and local taxes if you buy one issued by your home state. '(Highly rated muni bonds) have a supremely strong record of paying what they're supposed to when they're supposed to,' Robinson said. As with Treasuries, he noted, the key to getting the most out of a municipal bond is to hold it to maturity. Certificates of deposit: CDs from FDIC-insured banks are a reliable place to park money that you can afford to lock up for a fixed period. For instance, CDs with maturation periods ranging from 3 months to five years were all offering average yields over 4% on A good number of individual one-year CDs were offering a return between 4.5% and 5%. Keep in mind, earnings on a CD are subject to federal, state and local income taxes. In addition, if you buy a CD direct from a bank, you may pay an early withdrawal penalty if you cash it out before maturity, although such a penalty will be tax deductible. If you buy a so-called 'brokered' CD on a brokerage platform — which offers you a much wider range of CDs to choose from — you might lose money on your principal if you don't hold it to maturity and instead sell it into the secondary market at less than you bought it for, Robinson noted. Money market mutual funds: Money market mutual funds are currently averaging 4.14%, according to Crane Data, with some funds paying close to 4.4%. Unlike with fixed-rate bonds, Treasuries or CDs, you can't lock in a rate of return with a money market fund. But it's an easy, one-stop shop to park money that will always get the best cash yields on offer. Money market funds, which invest in government and corporate debt securities, are considered low-risk investments that usually maintain a price of $1 a share, although there have been a few times when they 'broke the buck' and traded below $1 a share. If the fund invests in top-rated municipal securities issued by your home state, your returns may be tax-free. Unlike money market accounts, money market mutual funds are not federally insured. Rates on debt not budging much There is nothing encouraging to say about interest rates on debt other than at least the Fed didn't choose to raise rates, which would make your prospects for finding an affordable loan worse. That said, how you manage your debt is ultimately way more important than any move the Fed makes. Credit cards: Even if the Fed were to make dramatic rate cuts, the interest you pay to borrow money on a credit card likely will remain sky-high. In fact, the average credit card rate actually rose to 20.12% as of April 30 from 20.09% the week before, according to The best thing you can do if you carry high-rate credit card debt is to see if you can get a 0% balance transfer card, said Matt Schulz, chief consumer finance analyst at LendingTree. That will buy you up to 21 months interest free, during which time you can direct as much money as you can to paying down your balance. Mortgages: As of May 1, interest rates on the 30-year fixed-rate mortgage averaged 6.76%, according to Freddie Mac. That's 0.05 points lower than the prior week, and just under half a point below the 7.22% average recorded around May 1 last year. 'For those shopping for a home this summer, rates are likely to stay in or around (the 6.6% to 7%) range in the near future. Even a rate cut from the Fed may not send mortgage rates lower, as the Fed doesn't impact mortgage rates directly the way they do with credit cards,' Schulz said. Car loans: Financing a car purchase is always a little complex. But the math is harder now. 'Today's car shoppers are contending with the difficult duo of elevated vehicle costs and high borrowing rates,' said Joseph Yoon, a consumer insights analyst at 'Adding to this scenario is the ambiguity surrounding tariff repercussions on vehicle supply and, consequently, their price tags, forcing buyers to navigate an ever-more complicated shopping path.' In April the average amount financed for a new car rose about $400 to $41,444 at 7.1% interest over 69 months, with an average monthly payment of $744, according to data from For used cars, the average loan amount was up about $600 to $28,855 at 10.9% over 69.5 months, with an average monthly payment of $555. Yoon's advice: Be really clear what your needs are for a new car versus your wants — including things like size and desired features. Then shop around for the best deals and carefully compare loan offers. To help with the math, has a car loan interest calculator. For more CNN news and newsletters create an account at
