Latest news with #interestRates
Reuters
an hour ago
- Business
- Reuters
BoE's Breeden sees loosening labour market and disinflation, Sunday Times reports
MANCHESTER, England, May 31 (Reuters) - Bank of England Deputy Governor Sarah Breeden highlighted a weakening labour market and slow economic growth in an interview published on Saturday, adding that "waves of disinflation are continuing". She told the Sunday Times that the central bank's narrative about continuing interest rate cuts was "not a million miles away from where the market is". Breeden, deputy governor for financial stability, is widely regarded as a centrist on the nine-strong Monetary Policy Committee. In May, she voted with the majority to cut interest rates by 0.25 percentage points, in a three-way split vote where two members voted to hold rates, and another two voted for a larger cut. "The big picture, the landscape on which I'm thinking about policy, is that the waves of disinflation are continuing," Breeden said. "I think the labour market is loosening. We've seen unemployment rise a little bit, and in addition we've got relatively weak growth." She added that she had no pre-determined path for interest rates. Financial markets on Friday priced between two and three more quarter-point interest rate cuts between now and the end of the year, while a Reuters poll of economists published last week pointed to two.
Yahoo
14 hours ago
- Business
- Yahoo
HELOC rates today, May 30, 2025: Interest rates edge slightly higher
HELOC rates edged slightly higher today, as tariffs were off, and then on again Thursday, with conflicting decisions from two authorities bouncing edicts back and forth. President Trump also met with Fed Chairman Jerome Powell, making it clear he wanted to see interest rate cuts sooner rather than later. Powell apparently made no promises. In a statement, the Fed said the chairman "did not discuss his expectations for monetary policy, except to stress that the path of policy will depend entirely on incoming economic information and what that means for the outlook." Here's how that news impacted home equity line of credit interest rates today. Dig deeper: HELOC vs. home equity loan: Tapping your equity without refinancing According to Zillow, rates on a 10-year HELOC are up two basis points to 6.89% today. The same rate is also available on 15- and 20-year HELOCS. VA-backed HELOCs dropped four basis points to 6.34%. Homeowners have a staggering amount of value tied up in their houses — more than $34 trillion at the end of 2024, according to the Federal Reserve. That's the third-largest amount of home equity on record. With mortgage rates lingering in the high 6% range, homeowners are not going to let go of their primary mortgage anytime soon, so selling a house may not be an option. Why let go of your 5%, 4% — or even 3% mortgage? Accessing some of that value with a use-it-as-you-need-it HELOC can be an excellent alternative. HELOC interest rates are different from primary mortgage rates. Second mortgage rates are based on an index rate plus a margin. That index is often the prime rate, which today is 7.50%. If a lender added 1% as a margin, the HELOC would have a rate of 8.50%. However, you will find reported HELOC rates are much lower than that. That's because lenders have flexibility with pricing on a second mortgage product, such as a HELOC or home equity loan. Your rate will depend on your credit score, the amount of debt you carry, and the amount of your credit line compared to the value of your home. And average national HELOC rates can include "introductory" rates that may only last for six months or one year. After that, your interest rate will become adjustable, likely beginning at a substantially higher rate. You don't have to give up your low-rate mortgage to access the equity in your home. Keep your primary mortgage and consider a second mortgage, such as a home equity line of credit. The best HELOC lenders offer low fees, a fixed-rate option, and generous credit lines. A HELOC allows you to easily use your home equity in any way and in any amount you choose, up to your credit line limit. Pull some out; pay it back. Repeat. Meanwhile, you're paying down your low-interest-rate primary mortgage like the wealth-building machine you are. Today, Lending Tree is advertising a 6.63% rate on a HELOC. That's likely an introductory rate that will convert to a variable rate later. When shopping lenders, be aware of both rates. And as always, compare fees, repayment terms, and the minimum draw amount. The draw is the amount of money a lender requires you to initially take from your equity. The power of a HELOC is tapping only what you need and leaving some of your line of credit available for future needs. You don't pay interest on what you don't borrow. Rates vary so much from one lender to the next that it's hard to pin down a magic number. You may see rates from nearly 7% to as much as 18%. It really depends on your creditworthiness and how diligent a shopper you are. For homeowners with low primary mortgage rates and a chunk of equity in their house, it's probably one of the best times to get a HELOC. You don't give up that great mortgage rate, and you can use the cash drawn from your equity for things like home improvements, repairs, and upgrades. Of course, you can use a HELOC for fun things too, like a vacation — if you have the discipline to pay it off promptly. A vacation is likely not worth taking on long-term debt. If you take out the full $50,000 from a line of credit on a $400,000 home, your payment may be around $395 per month with a variable interest rate beginning at 8.75%. That's for a HELOC with a 10-year draw period and a 20-year repayment period. That sounds good, but remember, it winds up being a 30-year loan. HELOCs are best if you borrow and pay back the balance in a much shorter period of time.
Yahoo
14 hours ago
- Business
- Yahoo
HELOC rates today, May 31, 2025: Interest rates on HELOCs fall as inflation cools
HELOC rates fell today, as Friday's inflation report showed consumer prices still cooling. This gives the Federal Reserve a little breathing room to continue a pause on further interest rate cuts. The FOMC is expected to skip a June rate decrease, and is widely believed to wait until September for further rate relief. However, HELOC rates are more demand-driven than mortgage rates, with bank and credit union deposits funding most home equity line of credit accounts. This gives depository institutions more latitude in competitive pricing. Dig deeper: HELOC vs. home equity loan: Tapping your equity without refinancing According to Zillow, rates on a 10-year HELOC are down five basis points to 6.84% today. The same rate is also available on 15- and 20-year HELOCS. VA-backed HELOCs moved up two basis points to 6.36%. Homeowners have a staggering amount of value tied up in their houses — more than $34 trillion at the end of 2024, according to the Federal Reserve. That's the third-largest amount of home equity on record. With mortgage rates lingering in the high 6% range, homeowners are not going to let go of their primary mortgage anytime soon, so selling a house may not be an option. Why let go of your 5%, 4% — or even 3% mortgage? Accessing some of that value with a use-it-as-you-need-it HELOC can be an excellent alternative. HELOC interest rates are different from primary mortgage rates. Second mortgage rates are based on an index rate plus a margin. That index is often the prime rate, which today is 7.50%. If a lender added 1% as a margin, the HELOC would have a rate of 8.50%. However, you will find reported HELOC rates are much lower than that. That's because lenders have flexibility with pricing on a second mortgage product, such as a HELOC or home equity loan. Your rate will depend on your credit score, the amount of debt you carry, and the amount of your credit line compared to the value of your home. And average national HELOC rates can include "introductory" rates that may only last for six months or one year. After that, your interest rate will become adjustable, likely beginning at a substantially higher rate. You don't have to give up your low-rate mortgage to access the equity in your home. Keep your primary mortgage and consider a second mortgage, such as a home equity line of credit. The best HELOC lenders offer low fees, a fixed-rate option, and generous credit lines. A HELOC allows you to easily use your home equity in any way and in any amount you choose, up to your credit line limit. Pull some out; pay it back. Repeat. Meanwhile, you're paying down your low-interest-rate primary mortgage like the wealth-building machine you are. Today, FourLeaf Credit Union is offering a HELOC rate of 6.49% for 12 months on lines up to $500,000. That's an introductory rate that will convert to a variable rate later. When shopping lenders, be aware of both rates. And as always, compare fees, repayment terms, and the minimum draw amount. The draw is the amount of money a lender requires you to initially take from your equity. The power of a HELOC is tapping only what you need and leaving some of your line of credit available for future needs. You don't pay interest on what you don't borrow. Rates vary so much from one lender to the next that it's hard to pin down a magic number. You may see rates from nearly 7% to as much as 18%. It really depends on your creditworthiness and how diligent a shopper you are. For homeowners with low primary mortgage rates and a chunk of equity in their house, it's probably one of the best times to get a HELOC. You don't give up that great mortgage rate, and you can use the cash drawn from your equity for things like home improvements, repairs, and upgrades. Of course, you can use a HELOC for fun things too, like a vacation — if you have the discipline to pay it off promptly. A vacation is likely not worth taking on long-term debt. If you take out the full $50,000 from a line of credit on a $400,000 home, your payment may be around $395 per month with a variable interest rate beginning at 8.75%. That's for a HELOC with a 10-year draw period and a 20-year repayment period. That sounds good, but remember, it winds up being a 30-year loan. HELOCs are best if you borrow and pay back the balance in a much shorter period of time.
Yahoo
14 hours ago
- Business
- Yahoo
Best money market account rates today, May 31, 2025 (best account provides 4.41% APY)
Find out how much you could earn with today's money market account rates. The Federal Reserve began cutting the federal funds rate in 2024, and as a result, deposit rates (including money market account rates) have been falling. It's more important than ever to compare MMA rates and ensure you earn as much as possible on your balance. The national average money market account rate stands at 0.62%, according to the FDIC. This might not seem like much, but consider that three years ago, it was just 0.07%. So by historical standards, money market account rates are still quite high. Even so, some of the top accounts are currently offering over 4% APY. Since these rates may not be around much longer, consider opening a money market account now to take advantage of today's high rates. Here's a look at some of the top MMA rates available today:Additionally, the table below features some of the best savings and money market account rates available today from our verified partners. This embedded content is not available in your region. The amount of interest you can earn from a money market account depends on the annual percentage rate (APY). This is a measure of your total earnings after one year when considering the base interest rate and how often interest compounds (money market account interest typically compounds daily). Say you put $10,000 in an MMA at the average interest rate of 0.64% with daily compounding. At the end of one year, your balance would grow to $10,064.20 — your initial $10,000 deposit, plus $64.20 in interest. Now let's say you choose a high-yield money market account that offers 4% APY instead. In this case, your balance would grow to $10,408.08 over the same period, which includes $408.08 in interest. Compared to a traditional savings account, a money market account may come with more restrictions. For example, money market accounts often require a higher minimum balance in order to earn the best interest rate and/or avoid fees. Certain MMAs may also limit the number of withdrawals you can make per month (typically six). In general, there are no banks that offer a 7% interest rate on money market accounts or any other type of deposit account. That said, you may be able to find local banks and credit unions running limited-time promotional rates on certain accounts, which could be as high as 7%. However, promotional rates at this level often apply to a limited balance. Read more: Do 7% interest savings accounts exist anymore? This embedded content is not available in your region.
Yahoo
14 hours ago
- Business
- Yahoo
Mortgage and refinance interest rates today, May 31, 2025: Lower, with 15-year rates back under 6%
Mortgage rates are lower today, with the 15-year term dipping back into the hallowed Fives. According to Zillow, today's 30-year fixed mortgage rate slipped by three basis points to 6.84%, and the 15-year fixed rate fell by six basis points to 5.99%. The Federal Reserve's preferred measure of inflation dipped Friday, and expectations of a cut in short-term interest rates being delayed until September firmed. The bond market settled in as the month of May nears its end. The 10-year Treasury yield, a key indicator of mortgage rates, gained about a quarter point for the month. Read more: What determines mortgage rates? It's complicated. Here are the current mortgage rates, according to the latest Zillow data: 30-year fixed: 6.84% 20-year fixed: 6.54% 15-year fixed: 5.99% 5/1 ARM: 7.01% 7/1 ARM: 7.11% 30-year VA: 6.36% 15-year VA: 5.71% 5/1 VA: 6.37% Remember, these are the national averages and rounded to the nearest hundredth. Learn more: 8 strategies for getting the lowest mortgage rates These are today's mortgage refinance rates, according to the latest Zillow data: 30-year fixed: 6.90% 20-year fixed: 6.53% 15-year fixed: 6.15% 5/1 ARM: 7.43% 7/1 ARM: 7.24% 30-year VA: 6.38% 15-year VA: 5.84% 5/1 VA: 6.19% Again, the numbers provided are national averages rounded to the nearest hundredth. Mortgage refinance rates are often higher than rates when you buy a house, although that's not always the case. Use the mortgage calculator below to see how today's interest rates would affect your monthly mortgage payments. For a deeper dive, you can use Yahoo's free mortgage calculator to see how homeowners insurance and property taxes factor into in your monthly payment estimate. You even have the option to enter costs for private mortgage insurance (PMI) and homeowners' association dues if those apply to you. These details result in a more accurate monthly payment estimate than if you simply calculated your mortgage principal and interest. There are two main advantages to a 30-year fixed mortgage: Your payments are lower, and your monthly payments are predictable. A 30-year fixed-rate mortgage has relatively low monthly payments because you're spreading your repayment out over a longer period of time than with, say, a 15-year mortgage. Your payments are predictable because, unlike with an adjustable-rate mortgage (ARM), your rate isn't going to change from year to year. Most years, the only things that might affect your monthly payment are any changes to your homeowners insurance or property taxes. The main disadvantage to 30-year fixed mortgage rates is mortgage interest — both in the short and long term. A 30-year fixed term comes with a higher rate than a shorter fixed term, and it's higher than the intro rate to a 30-year ARM. The higher your rate, the higher your monthly payment. You'll also pay much more in interest over the life of your loan due to both the higher rate and the longer term. The pros and cons of 15-year fixed mortgage rates are basically swapped from the 30-year rates. Yes, your monthly payments will still be predictable, but another advantage is that shorter terms come with lower interest rates. Not to mention, you'll pay off your mortgage 15 years sooner. So you'll save potentially hundreds of thousands of dollars in interest over the course of your loan. However, because you're paying off the same amount in half the time, your monthly payments will be higher than if you choose a 30-year term. Dig deeper: 15-year vs. 30-year mortgages Adjustable-rate mortgages lock in your rate for a predetermined amount of time, then change it periodically. For example, with a 5/1 ARM, your rate stays the same for the first five years and then goes up or down once per year for the remaining 25 years. The main advantage is that the introductory rate is usually lower than what you'll get with a 30-year fixed rate, so your monthly payments will be lower. (Current average rates don't necessarily reflect this, though — in some cases, fixed rates are actually lower. Talk to your lender before deciding between a fixed or adjustable rate.) With an ARM, you have no idea what mortgage rates will be like once the intro-rate period ends, so you risk your rate increasing later. This could ultimately end up costing more, and your monthly payments are unpredictable from year to year. But if you plan to move before the intro-rate period is over, you could reap the benefits of a low rate without risking a rate increase down the road. Learn more: Adjustable-rate vs. fixed-rate mortgage First of all, now is a relatively good time to buy a house compared to a couple of years ago. Home prices aren't spiking like they were during the height of the COVID-19 pandemic. So, if you want or need to buy a house soon, you should feel pretty good about the current housing market. However, mortgage rates are unpredictable right now due to the political and economic climate. Experts don't think rates will plummet in 2025, so you might not want to base your decision on whether to buy strictly on interest rates. Recent news that home price gains are slowing, with predictions that house values may actually ease lower this year, can be part of your home buying decision. The best time to buy is typically whenever it makes sense for your stage of life. Trying to time the real estate market can be as futile as timing the stock market — buy when it's the right time for you. Read more: Which is more important, your home price or mortgage rate? Have questions about buying, owning, or selling a house? Submit your question to Yahoo's panel of Realtors using this Google form. According to Zillow, the national average 30-year mortgage rate is 6.84% right now. But keep in mind that averages can vary depending on where you live. For example, if you're buying in a city with a high cost of living, rates could be higher. Overall, mortgage rates are expected to remain mostly steady in 2025. They probably won't drop significantly anytime soon. Mortgage rates are down slightly today and lower than where they were when they last peaked in mid-January. In many ways, securing a low mortgage refinance rate is similar to when you bought your home. Try to improve your credit score and lower your debt-to-income ratio (DTI). Refinancing into a shorter term will also land you a lower rate, though your monthly mortgage payments will be higher.
