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Tag: Interest Rates

  • Middle-market firms, including on LI, see growth amid challenges | Long Island Business News

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    The Blueprint:
    • ‘s survey included 500 financial decision-makers from U.S. middle-market firms, including on .
    • 92% rated their as good or very good in 2025, up from 79% the previous year.
    • Concerns about inflation, and geopolitical tensions increased among middle-market firms.
    • Only 22% of firms use their banker as a trusted advisor for major financial decisions.

    Middle-market commercial and industrial businesses saw strong financial performance in 2025, but now face rising cost pressures and global uncertainty.

    That’s according to Valley Bank’s second annual middle-market commercial and industrial survey, “Entering with Momentum.”

    Looking ahead, businesses remain optimistic but are adjusting to shifting dynamics, including cash‑flow timing, rising costs and an increasingly uncertain global landscape.

    “ help drive the U.S. economy and the positive results in this survey indicate that many are entering 2026 in strong and stable positions,” Gino Martocci, president of Commercial Banking of Valley Bank, said in a news release about the survey.

    “To maintain this momentum, leaders should focus on the basics, be selective in what they prioritize and those who focus on a few core areas and remain vigilant and adaptable, will achieve greater success in an evolving landscape,” Martocci said.

    Conducted in December, the survey included 500 financial decision-makers at U.S. middle-market companies across Valley Bank’s footprint, including Long Island. Eligible participants were responsible for or played a leading role in financial decisions at firms with annual revenues between $5 million and $249 million.

    Compared to 2025, respondents reported significant gains. Ninety-two percent rated their cash flow as good or very good, up from 79 percent the previous year. Productivity rose from 85 percent to 95 percent, as more companies reported operating more efficiently across their core functions. also climbed, increasing from 79 percent to 89 percent, reflecting improved financial results across the middle-market segment.

    Still, concerns about difficulty managing inflation and interest rates rose to 57 percent, up from 45 percent, while 52 percent say they were concerned about geopolitical tensions and trade policies, up from 41 percent a year ago.

    Survey respondents identified priorities that will drive their key initiatives for 2026. These include financial and operational efficiency, alongside efforts to enhance customer retention and loyalty. Strengthening pricing strategy and cost efficiency was also highlighted. Additionally, organizations plan to invest in AI and machine learning adoption. Data analytics and business intelligence were recognized as critical tools.

    Yet there may be shortcomings in carrying out these initiatives, according to the survey. Only 40 percent of respondents report effective cash-flow management, and 39 percent express confidence in their budgeting and forecasting processes. Just 37 percent feel they are effective in controlling costs, while 36 percent report strong profit-margin management. Meanwhile, 35 percent indicate they are successfully integrating financial technology, and 30 percent believe they are optimizing working capital.

    In addition, 30 percent say hiring remains difficult, and 17 percent report challenges in retaining top employees.

    The survey also showed that only 22 percent say they use their banker as a trusted advisor for major financial decisions.

    It also found that 39 percent implement mitigation services, even though 68 percent recognize the need for stronger . Additionally, just 57 percent rank data security among their top priorities.

    “Fraud protection is not optional, it is foundational,” Martocci said. “Simple safeguards, real-time alerts, and clearly defined response protocols can dramatically reduce financial loss and business disruption.”


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    Adina Genn

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  • HELOC and home equity loan rates Sunday, February 22, 2026: Monthly payments fall (example: $302 a month)

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    Interest rates on home equity lines of credit (HELOCs) and home equity loans are the lowest in years. And that means your monthly payment is more affordable. The example at the bottom of this page illustrates a HELOC payment of $302 a month on a $50,000 equity draw. It’s a valid estimate, but of course, your repayment terms may vary.

    The average HELOC rate is 7.23%, according to real estate data firm Curinos. The 52-week HELOC low was 7.19%. The national average rate on a home equity loan is 7.44%. The low was 7.38% in early December 2025. Rates are based on applicants with a minimum credit score of 780 and a maximum combined loan-to-value ratio (CLTV) of less than 70%.

    With primary home mortgage rates stuck near 6%, homeowners with home equity and a low primary mortgage rate may not be able to access the increasing value of their home. For those who are unwilling to give up their low home loan rate, a home equity line of credit or home equity loan can be an excellent solution.

    The Federal Reserve estimates that homeowners have $34 trillion dollars of equity locked within the walls of their homes. A second mortgage HELOC, or HEL allows U.S. homeowners to tap into the near-record-setting equity they have accumulated.

    Home equity 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 has just fallen to 6.75%. If a lender added 0.75% as a margin, the HELOC would have a rate of 7.50%.

    Lenders have flexibility with pricing on a second mortgage product, such as a HELOC or home equity loan, so it pays to shop around. 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.

    HELs don’t usually have introductory rates, so that’s one less variable to deal with. The fixed rate you earn on a home equity loan won’t change over the life of the agreement.

    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 and earning even more wealth-building equity.

    Today, LendingTree is offering a HELOC APR as low as 6.13% on a credit line of $150,000. However, remember that HELOCs typically come with variable interest rates, meaning your rate will fluctuate periodically. Make sure you can afford monthly payments if your rate rises.

    The best home equity loan lenders may be easier to find, because the fixed rate you earn will last the length of the repayment period. That means just one rate to focus on. And you’re getting a lump sum, so no draw minimums to consider.

    And as always, compare fees and the fine print of repayment terms.

    The national average for a HELOC is 7.23%, and 7.44% for a home equity loan. However, rates vary from one lender to the next. You may see rates from just below 6% 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 or a home equity loan. 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.

    If you withdraw the full $50,000 from a line of credit on your home and pay a 7.25% interest rate, your monthly payment during the 10-year draw period would be about $302. That sounds good, but remember that the rate is usually variable, so it changes periodically, and your payments may increase during the 20-year repayment period. A HELOC essentially becomes a 30-year loan. HELOCs are best if you borrow and repay the balance within a much shorter period.

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  • Long Island businesses eye cautious growth in 2026 | Long Island Business News

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    THE BLUEPRINT:

    • 45% of Long Island businesses forecast growth in 2026, down from 52% last year.

    • (45%) and retention of young professionals (34%) rank as top concerns.

    • 59% say AI will positively impact business; 51% have invested in AI tools.

    Businesses on Long Island are projecting a cautious outlook for growth in 2026.

    That’s according to the ‘s “” released last week. Conducted in partnership with Adelphi University and Citrin Cooperman, the survey polled an estimated 120 leaders of Long Island-based businesses across a wide range of industries.

    That cautious optimism “doesn’t surprise us,” said Terri Alessi-Miceli, president and CEO of HIA-LI, introducing a panel discussion about the survey, adding that entrepreneurs “go out and fight the good fight every day.”

    And, she said, “I know at least half of you said that you’re going to expand in some way. I think that’s really positive news.”

    The “survey showed that in 2025, many businesses expanded more than they had anticipated, and that was a great thing to see,” said John Fitzgerald, a partner at Citrin Cooperman, who moderated the panel. “We’re seeing … a more cautious outlook for 2026.”

    Forty-five percent of survey respondents forecasted growth, compared to 52 percent last year.

    Kevin Santacroce, chief banking officer of ConnectOne Bank said on the panel that his team is “very optimistic about 2026.”

    Looking historically “at the performance of our loan portfolios, our past-dues, we’re at all-time lows with regards to delinquencies and troubled credit,” he said. In addition, he said, viewing balance sheets, “most people are not overly leveraged.” And there’s been a stabilization in . Most client, she said, also have strong liquidity. “We see our clients pretty well-positioned,” he said.

    Despite optimism in the economy, the “ industry has struggled,” said Jimmy Coughlan, executive vice president and partner of Tritec. With a rise in construction costs and a period of increased interest rates, “we actually took about a five year pause on new developments outside of Station Yards.” But now, he said, “we’re finally getting optimistic again.” There is expectation of more rate cuts in the next two years, which would have “a big impact on our industry. And the housing crisis here is so acute that the demand is overwhelming,” he said.

    The survey found that 59 percent expected revenue to increase by less than 10 percent or stay the same, while 14 percent expected revenue to increase by 10 percent or more. Still 14 percent expected revenue to drop by less than 10 percent, and another 13 percent expected decreases of more than 10 percent.

    Of the challenges facing Long Island businesses, 45 percent cited inflation, 34 percent said retention of young professionals and families. And 8 percent said tariffs.

    As for , 59 percent thought it would positively impact their business, and 7 percent thought it could negatively impact business. And while 25 percent expected no effect, 79 percent said they had no plans to freeze hiring or implement a workforce reduction because of efficiencies created by AI. Meanwhile, 51 percent have made some investment into AI tools.

    As for threats, 37 percent of respondents reported being very to extremely concerned, 45 percent were moderately to slightly concerned and 3 percent had no concerns.

    When it comes to political issues, 35 percent expressed concern over partisan policy-making that influences the business environment, while 26 percent said immigration is one of most important issues facing Long Island.

    Top human resources concerns for business included compensation and benefits (41 percent), retention (19 percent), workforce productivity (14 percent) and hiring (13 percent).

    With government investment to facilitate growth on Long Island, 40 percent said it was needed for housing, 35 percent said transportation and infrastructure, 19 percent wanted to see more business grants or incentives while 3 percent said workforce training and education.

    Additional panelists included Rich Humann, president and CEO of H2M architects + engineers; Rick Lewis, CEO of the Suffolk Y Jewish Community Center; Christopher Nelson, president of St. Catherine of Siena Hospital; and Chris Storm, interim president of Adelphi University.

    Before the panel discussion, Rob Calarco, New York State assistant secretary for intergovernmental affairs – Long Island, delivered a presentation of the governor’s budget proposal.

    The full survey, along with insights, is available here.


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    Adina Genn

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  • Best CD rates today, February 15, 2026 (lock in up to 4% APY)

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    Find out how much you could earn by locking in a high CD rate today. A certificate of deposit (CD) allows you to lock in a competitive rate on your savings and help your balance grow. However, rates vary widely across financial institutions, so it’s important to ensure you’re getting the best rate possible when shopping around for a CD. The following is a breakdown of CD rates today and where to find the best offers.

    Historically, longer-term CDs offered higher interest rates than shorter-term CDs. Generally, this is because banks would pay better rates to encourage savers to keep their money on deposit longer. However, in today’s economic climate, the opposite is true.

    As of February 15, 2026, the highest CD rate is 4% APY. This rate is offered by Marcus by Goldman Sachs on its 1-year CD.

    The amount of interest you can earn from a CD 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 (CD interest typically compounds daily or monthly).

    Say you invest $1,000 in a one-year CD with 1.61% APY, and interest compounds monthly. At the end of that year, your balance would grow to $1,016.22 — your initial $1,000 deposit, plus $16.22 in interest.

    Now let’s say you choose a one-year CD that offers 4% APY instead. In this case, your balance would grow to $1,040.74 over the same period, which includes $40.74 in interest.

    The more you deposit in a CD, the more you stand to earn. If we took our same example of a one-year CD at 4% APY, but deposit $10,000, your total balance when the CD matures would be $10,407.42, meaning you’d earn $407.42 in interest. ​​

    Read more: What is a good CD rate?

    When choosing a CD, the interest rate is usually top of mind. However, the rate isn’t the only factor you should consider. There are several types of CDs that offer different benefits, though you may need to accept a slightly lower interest rate in exchange for more flexibility. Here’s a look at some of the common types of CDs you can consider beyond traditional CDs:

    • Bump-up CD: This type of CD allows you to request a higher interest rate if your bank’s rates go up during the account’s term. However, you’re usually allowed to “bump up” your rate just once.

    • No-penalty CD: Also known as a liquid CD, type of CD gives you the option to withdraw your funds before maturity without paying a penalty.

    • Jumbo CD: These CDs require a higher minimum deposit (usually $100,000 or more), and often offer higher interest rate in return. In today’s CD rate environment, however, the difference between traditional and jumbo CD rates may not be much.

    • Brokered CD: As the name suggests, these CDs are purchased through a brokerage rather than directly from a bank. Brokered CDs can sometimes offer higher rates or more flexible terms, but they also carry more risk and might not be FDIC-insured.

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  • Mortgage and refinance interest rates today, February 13, 2026: Low rates and new home discounts entice buyers

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    Mortgage rates slid a bit lower for the week. According to Freddie Mac, the average 30-year fixed rate fell two basis points to 6.09%. That’s a slim three basis points above the three-year low of 6.06%. The 15-year fixed-rate fell six basis points to 5.44%.

    Discounts on new homes have outpaced the resale market “for the first time in recent history,” Realtor.com reported Thursday. Prices were cut on nearly one in five new homes in late 2025.

    Here are the current mortgage rates, according to the latest Zillow data:

    • 30-year fixed: 5.88%

    • 20-year fixed: 5.73%

    • 15-year fixed: 5.44%

    • 5/1 ARM: 6.08%

    • 7/1 ARM: 5.84%

    • 30-year VA: 5.52%

    • 15-year VA: 5.11%

    • 5/1 VA: 5.08%

    Remember, these are national averages and have been rounded to the nearest hundredth.

    These are today’s mortgage refinance rates, according to the latest Zillow data:

    • 30-year fixed: 6.00%

    • 20-year fixed: 5.86%

    • 15-year fixed: 5.48%

    • 5/1 ARM: 6.15%

    • 7/1 ARM: 6.18%

    • 30-year VA: 5.44%

    • 15-year VA: 5.15%

    • 5/1 VA: 5.03%

    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.

    Dig deeper into the 7 home refinance options.

    Your mortgage rate plays a large role in how much your monthly payment will be. Use this mortgage calculator to see how your mortgage amount, rate, and term length will impact your monthly payments:

    You can bookmark the Yahoo Finance mortgage payment calculator and keep it handy for future use, as you shop for homes and lenders.

    A mortgage interest rate is a fee for borrowing money from your lender, expressed as a percentage. You can choose from two types of rates: fixed or adjustable.

    A fixed-rate mortgage locks in your rate for the entire life of your loan. For example, if you obtain a 30-year mortgage with a 6% interest rate, your rate will remain at 6% for the entire 30-year term unless you refinance or sell.

    An adjustable-rate mortgage locks in your rate for a predetermined period and then adjusts it periodically. Let’s say you get a 7/1 ARM with an introductory rate of 6%. Your rate would be 6% for the first seven years, then the rate would increase or decrease once per year for the last 23 years of your term. Whether your rate goes up or down depends on several factors, such as the economy and housing market.

    At the beginning of your mortgage term, most of your monthly payment goes toward interest. Your monthly payment toward mortgage principal and interest stays the same throughout the years — however, less and less of your payment goes toward interest, and more goes toward the mortgage principal or the amount you originally borrowed.

    A 30-year fixed-rate mortgage is a good choice if you want a lower mortgage payment and the predictability that comes with having a fixed rate. Just know that your rate will be higher than if you choose a shorter term, and you will pay significantly more in interest over the years.

    You may want to consider a 15-year fixed-rate mortgage if you aim to pay off your home loan quickly and save money on interest. These shorter terms come with lower interest rates, and since you’re cutting your repayment time in half, you’ll save a lot in interest in the long run. But you’ll need to be sure you can comfortably afford the higher monthly payments that come with 15-year terms.

    Typically, an adjustable-rate mortgage could be good if you plan to sell before the introductory rate period ends. Adjustable rates usually start lower than fixed rates, then your rate will change after a predetermined amount of time. However, 5/1 and 7/1 ARM rates have similar to (or even higher than) 30-year fixed rates recently. Before getting an ARM just for a lower rate, compare your rate options from term to term and lender to lender.

    Mortgage rates have generally fallen since the end of last May, and home loan rates are just above three-year lows, according to Freddie Mac.

    Economists don’t expect drastic mortgage rate declines through the end of 2026. Even with the most recent rate pause of the federal funds rate, mortgage rates continue to hover in the low-6% range.

    According to Freddie Mac, the national average 30-year mortgage fell by two basis points to 6.09% for the week, while the average 15-year mortgage rate dropped by six basis point to 5.44%.

    According to its January forecast, the Mortgage Bankers Association expects the 30-year mortgage rate to be near 6.1% through 2026. Fannie Mae also predicts a 30-year rate near 6% through next year.

    Mortgage rates are likely to remain little changed in 2027. The MBA predicts 30-year fixed rates of 6.2% to 6.3% in 2027. Fannie Mae predicts average rates near 6% for the full year of 2027.

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  • Best CD rates today, February 5, 2026 (lock in up to 4% APY)

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    Find out which banks are offering the best CD rates right now. If you’re looking for a secure place to store your savings, a certificate of deposit (CD) may be a great choice. These accounts often provide higher interest rates than traditional checking and savings accounts. However, CD rates can vary widely.

    Learn more about where CD rates stand today and how to find the best rates available.

    CD rates are relatively high compared to historical averages. That said, CD rates have been on the decline since last year when the Federal Reserve began cutting its target rate. The good news is that several financial institutions offer competitive rates of 4% APY and up, particularly online banks.

    Today, the highest CD rate is 4% APY. This rate is offered by Marcus by Goldman Sachs on its 1-year CD.

    Here is a look at some of the best CD rates available today from our verified partners:

    The Federal Reserve began decreasing the federal funds rate in light of slowing inflation and an overall improved economic outlook. It cut its target rate three times in late 2024 by a total of one percentage point.

    In December, the Fed announced its third rate cut of 2025 and additional cuts could be on the horizon in 2026. However, it’s uncertain when that will happen and how many cuts the Fed plans to make.

    The federal funds rate doesn’t directly impact deposit interest rates, though they are correlated. When the Fed lowers rates, financial institutions typically follow suit (and vice versa). So now that the Fed has lowered its rate, CD rates are beginning to fall again. That’s why now may be a good time to put your money in a CD and lock in today’s best rates.

    The process for opening a CD account varies by financial institution. However, there are a few general steps you can expect to follow:

    • Research CD rates: One of the most important factors to consider when opening a CD is whether the account provides a competitive rate. You can easily compare CD rates online to find the best offers.

    • Choose an account that meets your needs: While a CD’s interest rate is a key consideration, it shouldn’t be the only one. You should also evaluate the CD’s term length, minimum opening deposit requirements, and fees to ensure a particular account fits your financial needs and goals. For example, you want to avoid choosing a CD term that’s too long, otherwise you’ll be subject to an early withdrawal penalty if you need to pull out your funds before the CD matures.

    • Get your documents ready: When opening a bank account, you will need to provide a few pieces of information, including your Social Security number, address, and driver’s license or passport number. Having these documents on hand will help streamline the application process.

    • Complete the application: These days, many financial institutions allow you to apply for an account online, though you might have to visit the branch in some cases. Either way, the application for a new CD should only take a few minutes to complete. And in many cases, you’ll get your approval decision instantly.

    • Fund the account: Once your CD application is approved, it’s time to fund the account. This can usually be done by transferring money from another account or mailing a check.

    Read more: Step-by-step instructions for opening a CD

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  • Home prices are poised to dip in 22 U.S. cities next year, a new analysis says. See where.

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    It’s still a tough time to get a foothold in the housing market, with homes sitting near record values and mortgage rates parked well above 6%. But the tide could turn in 2026, with property prices forecast to dip in 22 of the largest 100 U.S. cities and mortgage rates expected to ease slightly, according to a new analysis from Realtor.com.

    The real estate market is expected to move in a more “buyer-friendly” direction next year, leading to the “most balanced housing market” since the pandemic, meaning that neither sellers nor buyers are likely to have the upper hand in negotiations, said Jake Krimmel, a senior economist at Realtor.com.

    Mortgage rates are expected to dip to an average of 6.3% next year, a slight drop from 2025’s 6.6% average rate. Lower borrowing costs, as well as strong wage growth next year, should encourage more buyers to jump into the market, Krimmel added.

    “2026 is going to be a year where we think the market is going to steady,” Krimmel said. “It’s going to show a lot of signs of getting back on track to what we consider to be normal.”

    That will help push up existing-home sales, which are projected to increase less than 2% to 4.13 million properties in 2026, according to Realtor.com‘s report. That’s only a slight bump from this year’s projected 4.07 million home sales, but a notable change given that transactions have been relatively flat throughout 2025. 

    Zillow, another online real estate marketplace, also expects the housing market will ease for homebuyers as inventory grows and mortgage rates tick down. The company projects existing home sales will rise to nearly 4.3 million next year, up 4.3% from its projected total for 2025. Mortgage rates are likely to hover just above 6%, according to Zillow — higher than in recent years, but modest by historical standards.

    Where will prices drop?

    Most of the 22 cities where home prices are forecast to drop next year are located in the Southeast and the West. For instance, seven of the eight largest cities in Florida are projected to see declines in home prices next year, with the sole exception of Miami, the report said. 

    Homes around Cape Coral and Fort Lauderdale in Florida are expected to see the nation’s largest price decline next year, with homes dropping by 10.2%, the analysis says. That’s followed by the North Port-Sarasota-Bradenton, Florida region, with an 8.9% decline.

    The cities with projected price drops include those where inventory has expanded, providing more choices for buyers, Krimmel said. Some of those metropolitan areas may now also have lighter demand from buyers compared with the COVID-era real estate boom, which was fueled by low mortgage rates and a shift to work-at-home policies.

    “These places, among others, saw a huge frenzy during the pandemic, so part of what we are projecting is that demand continuing to come back down to earth,” Krimmel told CBS News.

    Prices are expected to rise in the other 78 largest U.S. cities, but the hikes are likely to be small, with a median price gain of 4% across those locations.

    To make its projections, Realtor.com examined inventory, new construction, price growth, wage and job growth, and unemployment across the 100 cities. 

    Edited by

    Aimee Picchi

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  • How Federal Reserve rates impact your wallet

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    How Federal Reserve rates impact your wallet – CBS News









































    Watch CBS News



    Here’s how changes at the Federal Reserve can matter in your life as President Trump pushes for new leadership.

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  • Fed holds interest rates steady  – Houston Agent Magazine

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    The Federal Reserve left interest rates untouched at its Open Market Committee meeting on Wednesday, the first time it hasn’t cut them since July. 

    In a statement after the meeting, the 12-member body said that while economic activity has been expanding at a solid pace, job growth has remained low, and inflation is “somewhat elevated.”  

    Two members appointed by President Trump — Stephen Miran and Christopher Waller — voted against the decision to leave the target range for the federal funds rate at 3.5% to 3.75% because they wanted another cut, while the rest voted in favor of it. 

    The Fed has a dual mandate to achieve maximum employment and keep inflation below 2%. 

    “Uncertainty about the economic outlook remains elevated,” the Fed said. “The Committee is attentive to the risks to both sides of its dual mandate.” 

    The Fed began cutting rates in September after the nation’s economic outlook began to soften. The housing industry has been eager for more cuts to help improve affordability, which has stymied the pace of home sales over the last couple years. Observers expect the Fed to cut rates at least 0.25% this year.

    “While the Federal Reserve is maintaining interest rates in order to try to bring inflation levels closer to its target, uncertainties surrounding the economy remain elevated,” Cotality Chief Economist Selma Hepp said. “The job market remains a sticking point, even though the economy as a whole remains on solid ground. With tariffs continuing to impact pricing on so many consumer products, pressure will remain to find stronger solutions that would help lower the cost of everyday items for families.” 

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    John Yellig

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  • No change to interest rates after first 2026 meeting, Federal Reserve announces

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    The Federal Reserve announced Wednesday that interest rates would remain unchanged, holding steady in its current range of 3.5% to 3.75%. CBS News business analyst Jill Schlesinger has more.

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  • Credit card interest rates: How high is too high? – MoneySense

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    Credit card rate caps spark debate

    The Canadian Bankers Association said in a statement Monday that Canada’s credit card market is highly competitive and well regulated.

    “Regulatory interventions aimed at artificially capping credit card interest rates can lead to unintended consequences that harm consumers, such as reducing credit availability for many Canadians and business owners,” said spokeswoman Nathalie Bergeron in an email. “Such a cap could drive customers towards more costly alternatives and reduce the value that all consumers receive from credit cards.”

    Conacher, who’s been pushing for lower credit card rates in Canada for decades, said that banks always say they’ll have to stop offering credit to some, but never provide proof. “Whenever the banks say we wouldn’t be able to afford, we wouldn’t have these margins, and then as a result, we’d have to cut off people, they should be required to prove that’s true,” he said. “No one should accept it at face value, given their profit levels.”

    He pointed out how credit card rates have stayed the same, generally hovering around 20%, despite wide fluctuations in interest rates over the last two decades, as evidence there is room to reduce.

    Best low interest credit cards in Canada

    Studies suggest rate caps could save billions

    Research in the U.S., after Trump first put out the plan as a campaign pledge, found that Americans would save about US$100 billion in interest a year if credit card rates were capped at 10%. The same researchers found that while the credit card industry would take a major hit, it would still be profitable, although credit card rewards and other perks might be scaled back.

    In remarks from late 2024 to a parliamentary committee, the banking association’s senior vice-president for banking policy, Darren Hannah, said that 71% of Canadians pay off their balance every month, while there are also some lower-interest card options. He said credit cards offer great value to consumers, that there are some options to switch credit card debt to instalment loans at potentially lower interest, and that the industry has worked with consumers during tough times like the COVID-19 pandemic when it provided deferrals on credit cards.

    What didn’t happen during the pandemic though, was much of any change in credit card interest rates. The lack of change, despite the historically low Bank of Canada policy rate, prompted the Canadian Labour Congress to call for a better response from banks in 2020. 

    Related reading: Credit card interest calculator

    Federal interest caps stop short of credit cards

    The question of what level of interest rate is acceptable is an age-old question, but one the federal government has worked to tackle recently. Ottawa officially lowered the maximum allowable interest rates on loans to 35% on an annual percentage rate from 48%, while separately setting out lower maximums for payday loan charges. The change wasn’t enough to affect credit cards, though.

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    And while interest rates are certainly key, it’s also important to look at hidden charges and other costs like interchange fees, said Claire Celerier, Canada Research Chair in household finance at the University of Toronto’s Rotman School of Management. “The risk is that if you cap the interest rate and if there is no cap on late payment fees, interchange fees, and so on, banks are going to recover by increasing all the other fees.” Such fees are generally more hidden than the interest rate, raising the potential of further distorting the market. 

    Lower-income cardholders tend to bear hidden costs

    Low-income people can sometimes shoulder a disproportionate share of fees, like the interchange fee charged to merchants, because while stores spread out the costs among all shoppers, high-earners get some costs back in credit card rewards. “I think what Trump is doing, the effect is that banks are going to increase their fees and it will be at the expense of the poor.” 

    The federal government in 2024 did secure an agreement on reduced interchange fees, though the rates still stand much higher than in Europe. 

    Derek Holt, vice president of Scotiabank Economics, said in a note Monday that a lowering of the cap on rates would also likely mean higher monthly minimum payments, card companies raising other fees and many losing access to free credit. “In short, education and efforts to raise financial literacy may be more effective than rate caps and so could efforts to address severe income disparities within the U.S. economy that are not the fault of the cards industry.” 

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    About The Canadian Press

    The Canadian Press is Canada’s trusted news source and leader in providing real-time stories. We give Canadians an authentic, unbiased source, driven by truth, accuracy and timeliness.

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  • Existing-home sales end 2025 at highest pace in almost 3 years  – Houston Agent Magazine

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    Existing-home sales in the U.S. jumped 5.1% month-over-month to a seasonally adjusted annual rate of 4.35 million in December, surpassing the consensus expectation of 4.23 million and representing the highest rate in almost three years, the National Association of REALTORS® said. Year over year, sales rose 1.4%. 

    “2025 was another tough year for homebuyers, marked by record-high home prices and historically low home sales,” said NAR Chief Economist Lawrence Yun. “However, in the fourth quarter, conditions began improving, with lower mortgage rates and slower home price growth. December home sales, after adjusting for seasonal factors, were the strongest in nearly three years. The gains were broad-based, with all four major regions improving from the prior month.” 

    Housing inventory fell 18.1% from November to 1.18 million units, which represents a 3.5% gain from December 2025. Given the rate of sales, the nation had a 3.3-month supply of unsold homes, down from 4.2 months in November but up from 2.2 months a year earlier. 

    “Inventory levels remain tight,” Yun added. “With fewer sellers feeling eager to move, homeowners are taking their time deciding when to list or delist their homes. Similar to past years, more inventory is expected to come to market beginning in February.” 

    The median existing-home price rose 0.4% year over year to $405,400, marking the 30th straight month of annual increases. Meanwhile, the average mortgage rate was 6.19% in December, down from 6.24% the previous month and 6.72% a year ago. 

    Regionally, sales were up month-over-month across the board. Year-over-year, sales rose in the South, were flat in the Midwest and West, and declined in the Northeast. 

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  • Fed chair Jerome Powell calls federal investigation

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    Federal Reserve Chair Jerome Powell said in a video Sunday that the Justice Department is investigating whether he lied to Congress about the Central Bank’s renovation project. He compared the threat of criminal indictment to intimidation and said, “This unprecedented action should be seen in the broader context of the administration’s threats and ongoing pressure.” Scott MacFarlane reports.

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  • President Trump Just Made a Big Move That Could Benefit 1 of My Top Stock Picks for 2026

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    • U.S. existing home sales are near a five-year low right now, as elevated interest rates keep buyers sidelined.

    • President Trump just announced a plan that could bring down mortgage rates and reignite the real estate market.

    • Douglas Elliman is one of America’s largest real estate brokerage companies, and its stock could soar in 2026 if the president’s plan works.

    • 10 stocks we like better than Douglas Elliman ›

    Prediction Market powered by

    In August 2023, the U.S. Federal Reserve concluded an aggressive campaign to hike interest rates, which sent the cost of a mortgage skyrocketing to the highest level in two decades. The goal was to tame a soaring inflation rate, and thankfully, it worked, so the Fed has now cut interest rates six times since September 2024.

    That isn’t fast enough for President Donald Trump, though, who regularly calls for the Fed to cut rates more quickly to bring relief to homeowners. However, he might have found a workaround, as last Thursday, he instructed his representatives to purchase $200 billion worth of mortgage-backed securities (MBSes). These bonds hold thousands of mortgages and are sold to investors.

    As is the case with all bonds, a sudden flurry of buying activity will increase the price of each MBS, while decreasing its yield. A lower yield, in theory, will translate to lower interest rates on mortgages, thus helping Trump achieve his goal without help from the Fed.

    Federal Housing Finance Director Bill Pulte said government-controlled enterprises Fannie Mae (Federal National Mortgage Association) and Freddie Mac (Federal Home Loan Mortgage Corporation) will carry out the $200 billion in MBS purchases in the public market.

    Image source: Getty Images.

    Existing home sales in the U.S. are currently hovering near a five-year low, and according to Redfin, there were 529,770 more sellers than buyers in November. Elevated interest rates have reduced the borrowing capacity of first-time home buyers, shutting many of them out of the market.

    Additionally, many existing homeowners are locked into 30-year mortgages at significantly lower interest rates than what is currently available, so even if they wanted to upgrade or downsize, moving isn’t a financially sound decision at this time. That takes even more would-be buyers out of the market. It’s very hard for real estate brokers to deliver sales in this environment, especially at favorable prices.

    US Existing Home Sales Chart
    US Existing Home Sales data by YCharts

    Douglas Elliman (NYSE: DOUG) is America’s fifth-largest real estate brokerage company, but it’s one of the leaders in luxury markets in California, Florida, New York, Texas, and more. It was founded in 1911, so it has over a century of experience navigating the peaks and troughs of the housing market.

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  • The US is taking control of Venezuela and targeting Greenland. The Dow could still hit 50,000

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    (CNN) — The United States attacked Venezuela and President Donald Trump is threatening to take Greenland “the hard way.” All the while, the US has an uncertain economic outlook and a weak jobs report.

    But the Dow Jones Industrial Average could still hit a record 50,000 points on Monday.

    The Dow, which consists of large companies that are thought to be representative of the market, usually reflects broader American sentiment. When tensions are high or people are gloomy, the Dow tends to drop; when people sing a more positive tune, the Dow trends upward.

    Now, Americans are facing a stark political divide: strikes in Venezuela, protests against ICE following the fatal shooting of a Minneapolis mother, the economy capping off 2025 with weak job gains and intentions to “do something on Greenland, whether they like it or not.”

    That should mean the Dow is suffering, not nearing a record high. So, why is it contradicting history?

    Economic impact over big headlines

    Wall Street is more concerned with the economic impact of Trump’s political moves, such as whether strikes in Venezuela could disrupt the flow of oil.

    But Trump has proposed that the US will invest in Venezuela’s oil infrastructure, potentially tapping into the country’s crude — which amounts to about a fifth of the world’s global reserves, according to the US Energy Information Administration.

    It could increase defense spending, but not enough to spook the market, said Jay Hatfield, chief executive at Infrastructure Capital Advisors.

    “It’s really critical to focus on the economic drivers of the stock market and recognize that the political and international affairs issues are just that, unless they’re extreme,” he said.

    No official deals have been reached, Energy Secretary Chris Wright told CNN’s Kristen Holmes, but there was “tremendous interest” from major oil companies after Friday’s meeting between administration officials and executives.

    Opening up the flow of oil would boost the economy, noted Hatfield, which is a more optimistic outlook for investors.

    The index continued to post gains throughout the week as America’s tensions shifted inward. On Friday, the Dow gained another 237 points.

    There’s a few reasons for optimism: Trump ordered his “representatives” to buy $200 billion in mortgage bonds to drive down housing costs, investors are looking forward to AI adoption and there haven’t been mass layoffs, Hatfield said.

    The University of Michigan’s latest consumer survey showed that sentiment increased in January for the second consecutive month, to a preliminary reading of 54, up from December’s 52.9. Most people were surveyed before the capture of Nicolás Maduro.

    Americans have a more sour outlook on Trump’s economy due to concerns about more expensive groceries and services. But it’s not translating to consumer spending, which has continued to support the economy.

    US retail sales on Black Friday, for instance, climbed 4.1% compared with last year, according to Mastercard SpendingPulse data.

    It’s largely due to the K-shaped economy, where wealthier Americans continue to spend as their wallets are bolstered by the strong stock market, wage gains and higher home values. Meanwhile, lower income households pull back on spending because of the slowing job market, high debt and inflation.

    “They’re a little bit cautious that jobs aren’t being created, but they’re not losing jobs either,” said Paul Christopher, the head of Wells Fargo Investment Institute’s global investment strategy. And this year is expected to have strong job growth, he said.

    Interest rate cut optimism

    Investors are still optimistic about the Federal Reserve slashing interest rates, after three back-to-back rate cuts in 2025, noted Hatfield.

    There could be more volatility in the coming weeks, though, because of earnings season and the Bureau of Labor Statistics’ December Consumer Price Index report releases, according to Christopher.

    The “no-hire no-fire” jobs report gives the Fed a green light to cut rates, he said.

    “The markets look through the other stuff, the political stuff, and they’re going to focus on what’s going to be, we think, a pretty strong economy in 2026. So whether we hit Dow (50,000) on Monday or Tuesday or Wednesday, we’ll sort of look at the larger picture here,” Christopher said.

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  • HELOC and home equity loan rates today, January 9, 2026: A new low mark for HELOCs

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    The national average rate for home equity lines of credit (HELOC) fell to a new low in well more than a year. The average home equity loan rate is down three basis points from last month.

    According to Curinos data, the average HELOC rate is 7.25%, down 19 basis points from last month. The national average rate on a home equity loan is 7.56%, three basis points lower than one month ago.

    Both rates are based on applicants with a minimum credit score of 780 and a maximum combined loan-to-value ratio (CLTV) of less than 70%.

    Homeowners have an impressive amount of value tied up in their houses — nearly $36 trillion at the end of the second quarter of 2025, according to the Federal Reserve. That’s the largest amount of home equity on record.

    With mortgage rates remaining in the low-6% range, homeowners are unlikely to let go of their primary mortgage anytime soon, so selling a house may not be an option. A cash-out refinance might not be workable either. Why give up your 5%, 4% — or even 3% mortgage?

    Accessing some of that value with a use-it-as-you-need-it HELOC or lump-sum home equity loan can be an excellent alternative.

    MORE: Here are our picks for the best home equity loan lenders.

    Home equity interest rates are calculated differently from mortgage rates. Second mortgage rates are based on an index rate plus a margin. That index is often the prime rate, which is 6.75% following the last Federal Reserve rate cut on December 10. If a lender added 0.75% as a margin, the HELOC would have a variable rate of 7.50%.

    A home equity loan may have a different margin, because it is a fixed-interest product.

    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. Shop two or three lenders to find your best interest rate offer.

    With three rate cuts from the Federal Reserve in 2025, the prime rate has fallen to 6.75%. As a result, home equity lenders have been repricing their products.

    Today, FourLeaf Credit Union is offering a HELOC APR of 5.99% for 12 months on lines up to $500,000. That’s an introductory rate that will convert to a variable rate at a later date.

    As the offer proves, lenders will not only lower their adjustable rates, but their introductory rates too, following the Fed’s lower-rate policy.

    When shopping for 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 best home equity loan lenders may be easier to find, because the fixed rate you earn will last the length of the repayment period. That means just one rate to focus on. And you’re getting a lump sum, so no draw minimums to consider.

    Rates vary significantly from one lender to the next. You may see rates from 6% to as much as 18%. It really depends on your creditworthiness and how diligent you are as a shopper. Currently, the national average for a HELOC is 7.25%, and for a home equity loan it’s 7.56%.

    Interest rates fell for most of 2025. They will likely keep dipping lower this year. So yes, it’s a good time to get a second mortgage. And with a HELOC or a HEL, you can use the cash drawn from your equity for things like home improvements, repairs, and upgrades.

    If you withdraw the full $50,000 from a line of credit on your home and pay a 7.50% interest rate, your monthly payment during the 10-year draw period would be about $313. That sounds good, but remember that the rate is usually variable, so it changes periodically, and your payments will increase during the 20-year repayment period. A HELOC essentially becomes a 30-year loan. HELOCs are best if you borrow and repay the balance within a much shorter period of time.

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  • Bank of America CEO says “the market will punish people if we don’t have an independent Fed”

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    Bank of America CEO Brian Moynihan talks prices, affordability, inflation predictions for 2026, the “shock” from the business community when President Trump enacted tariffs and how “the market will punish people if we don’t have an independent Fed.” Editor’s note: This interview was filmed on Dec. 17, 2025.

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