ReportWire

Tag: Interest Rates

  • Credit card interest calculator – MoneySense

    [ad_1]

    Play around with our credit card interest calculator to calculate credit card interest and figure out how long it will take you to repay the debt. This tool can help you develop a plan to address your balance and avoid paying interest going forward.

    How to use the credit card interest calculator

    Our credit card interest calculator can help you figure out two key pieces of information: 

    • How much money you’ll pay in interest based on your current monthly payment
    • How many months it will take to pay off your credit card balance

    Start by inputting your credit card balance and your card’s annual percentage rate (APR). If you don’t know this number, log into your credit card account and pull up your card’s terms and conditions. 

    Next, decide if you want to see how much total interest you’ll pay based on your current monthly payment (and enter that amount) or specify your payoff goal in months to see how the total interest charges.

    How to calculate credit card interest

    Since interest is expressed as an annual percentage rate, card issuers take several steps to determine how much to charge each month. Here’s how you can figure out their method:

    1. Convert your APR to a daily rate. Most issuers charge interest daily, so divide the APR by 365 to find the daily periodic interest rate. Make sure you’re using the purchase interest rate (not the cash advance or balance transfer rate).
    2. Figure out your average daily balance. Check your credit card statement to see how many days are in the billing period. Then, add up each day’s daily balance, including the balance that carried over from the previous month. Once you have all the daily balances, divide the figure by the number of days in the billing period to find your average daily balance.
    3. Multiply the balance by the daily rate, then multiply the result by the number of days in the cycle. Now that you have all the details you need, multiply the average daily balance by your daily periodic interest rate. Then multiply that number by the number of days in the billing cycle. This shows you how much interest you’ll pay in a month.

    A quick example

    If you have a credit card with a $1,000 balance and 20% APR, your daily interest rate would be 0.0548%. Assuming you don’t add to the debt, you’ll be charged around $0.55 in interest every day. If there are 30 days in the billing cycle, you’ll pay $16.50 in interest for the month.

    How to avoid paying credit card interest

    When you get a credit card statement each month, you’ll see a minimum payment amount listed. This is often a flat rate or a small percentage of your balance (usually 3%), whichever is higher. 

    While it’s tempting to just pay the minimum payment your credit card issuer asks for, doing so guarantees you’ll be charged interest because you’ll be carrying a balance into the following month. 

    Instead, make a point of paying off your balance in full every month. Not only will you avoid paying credit card interest, but your card issuer will report these payments to the credit monitoring bureaus, which can boost your credit score. Plus, the cash back or rewards you earn with the card won’t be offset by the interest you’re charged, so you truly get more out of using your card.

    How to reduce credit card debt

    If you already have a credit card balance, don’t despair. There are strategic things you can do to get out from under credit card debt.

    1. Negotiate with your credit card provider

    As a first step, call your bank or credit card provider to request a lower interest rate. Your card issuer may be willing to work with you, so don’t hesitate to ask. They might agree to lower your rate, offer to switch you to a lower-interest card, or create a repayment plan that works for your situation—but you’ll never know if you don’t ask.

    Article Continues Below Advertisement


    2. Make a budget and pay with cash or debit

    It’s important to honestly track your income and expenses so you can trim unnecessary costs. Stop charging purchases to your credit cards and switch to cash or debit, instead.

    While it might seem difficult, try to contribute to an emergency savings fund. If an unexpected expense comes up (like an appliance repair or vet bill), you can pull from your fund rather than charge it to your credit card.

    3. Open a balance transfer credit card

    If you have significant debt, find a balance transfer credit card with a great promotional rate. Then, move your existing balance to the card. You can quickly pay down the balance while you’re not being charged interest. The golden rule of balance transfer cards: never charge new purchases to the card.

    Canada’s best credit cards for balance transfers

    4. Try the avalanche or snowball repayment strategy

    There are two main approaches to paying off debt:

    • Avalanche method: Focus on paying off the debt with the highest interest rate first, while making only the minimum payments on your other accounts. Once the highest-interest debt is paid off, move on to the next-highest-interest debt.
    • Snowball method: Start by paying off the debt with the smallest balance first, while continuing to make minimum payments on your other debts. After clearing one debt, move to the next-smallest balance. This method may cost more in interest over time, but it can provide strong motivation and momentum to stay on track with debt repayment.

    5. Work with a credit counselling agency.

    It’s completely understandable to feel overwhelmed by your credit card debt, which is why a credit counsellor can be so helpful. Speak to representatives from your financial institution, a credit counselling agency, or a debt consolidation program to discuss your options. They can help you create a tailored plan to resolve the situation.

    5. Consider debt consolidation.

    If you’re juggling multiple loans and credit card balances and having trouble paying them off, it may make sense to consolidate your debt. This means combining two or more debts into one, with just one payment to make each month.

    Another option is a debt consolidation loan from a bank or other financial institution. Or you could work with a credit counselling agency to negotiate a debt consolidation program (DCP) or consumer proposal (repaying only part of your debt) with your lenders.

    Learn more about each of these options by reading “How to consolidate debt in Canada” and “Who should Canadians consult for debt advice?”

    [ad_2]

    Jessica Gibson

    Source link

  • Mortgage and refinance interest rates today, November 23, 2025: Fractional moves

    [ad_1]

    Mortgage rates have made fractional moves up and down for weeks without much change. According to Zillow data, the current 30-year fixed mortgage rate is 6.11%. The 15-year fixed rate is 5.62%.

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

    • 30-year fixed: 6.11%

    • 20-year fixed: 5.94%

    • 15-year fixed: 5.62%

    • 5/1 ARM: 6.17%

    • 7/1 ARM: 6.08%

    • 30-year VA: 5.58%

    • 15-year VA: 5.33%

    • 5/1 VA: 5.32%

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

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

    • 30-year fixed: 6.28%

    • 20-year fixed: 6.19%

    • 15-year fixed: 5.73%

    • 5/1 ARM: 6.40%

    • 7/1 ARM: 6.43%

    • 30-year VA: 5.64%

    • 15-year VA: 5.30%

    • 5/1 VA: 5.35%

    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.

    Learn whether now is a good time to refinance your mortgage.

    Use the mortgage calculator below to see how various mortgage terms and interest rates will impact your monthly payments.

    You can bookmark the Yahoo Finance mortgage payment calculator and keep it handy for future use. It also considers factors like property taxes and homeowners insurance when determining your estimated monthly mortgage payment. This gives you a more realistic idea of your total monthly payment than if you just looked at mortgage principal and interest.

    The average 30-year mortgage rate today is 6.11%. A 30-year term is the most popular type of mortgage because by spreading out your payments over 360 months, your monthly payment is lower than with a shorter-term loan.

    The average 15-year mortgage rate is 5.62% today. When deciding between a 15-year and a 30-year mortgage, consider your short-term versus long-term goals.

    A 15-year mortgage comes with a lower interest rate than a 30-year term. This is great in the long run because you’ll pay off your loan 15 years sooner, and that’s 15 fewer years for interest to accumulate. But the trade-off is that your monthly payment will be higher as you pay off the same amount in half the time.

    Let’s say you get a $300,000 mortgage. With a 30-year term and a 6.11% rate, your monthly payment toward the principal and interest would be about $1,820, and you’d pay $355,172 in interest over the life of your loan — on top of that original $300,000.

    If you get that same $300,000 mortgage with a 15-year term and a 5.62% rate, your monthly payment would jump to $2,470. But you’d only pay $144,671 in interest over the years.

    With a fixed-rate mortgage, your rate is locked in for the entire life of your loan. You will get a new rate if you refinance your mortgage, though.

    An adjustable-rate mortgage keeps your rate the same for a predetermined period of time. Then, the rate will go up or down depending on several factors, such as the economy and the maximum amount your rate can change according to your contract. For example, with a 7/1 ARM, your rate would be locked in for the first seven years, then change every year for the remaining 23 years of your term.

    Adjustable rates typically start lower than fixed rates, but once the initial rate-lock period ends, it’s possible your rate will go up. Lately, though, some fixed rates have been starting lower than adjustable rates. Talk to your lender about its rates before choosing one or the other.

    Mortgage lenders typically give the lowest mortgage rates to people with higher down payments, great or excellent credit scores, and low debt-to-income ratios. So, if you want a lower rate, try saving more, improving your credit score, or paying down some debt before you start shopping for homes.

    Waiting for rates to drop probably isn’t the best method to get the lowest mortgage rate right now. If you’re ready to buy, focusing on your personal finances is probably the best way to lower your rate.

    To find the best mortgage lender for your situation, apply for mortgage preapproval with three or four companies. Just be sure to apply to all of them within a short time frame — doing so will give you the most accurate comparisons and have less of an impact on your credit score.

    When choosing a lender, don’t just compare interest rates. Look at the mortgage annual percentage rate (APR) — this factors in the interest rate, any discount points, and fees. The APR, which is also expressed as a percentage, reflects the true annual cost of borrowing money. This is probably the most important number to look at when comparing mortgage lenders.

    According to Zillow, the national average 30-year mortgage rate for purchasing a home is 6.11%, and the average 15-year mortgage rate is 5.62%. But these are national averages, so the average in your area could be different. Averages are typically higher in expensive parts of the U.S. and lower in less expensive areas.

    The average 30-year fixed mortgage rate is 6.11% right now, according to Zillow. However, you might get an even better rate with an excellent credit score, sizable down payment, and low debt-to-income ratio (DTI).

    Mortgage rates have been inching down recently, but they aren’t expected to drop drastically in the near future.

    [ad_2]

    Source link

  • Are we in an AI bubble? How to protect your portfolio if your AI investments turn against you.

    [ad_1]

    Despite stellar earnings reports from Nvidia (NVDA) this week and record returns of tech stocks related to artificial intelligence so far this year, there is still a lot of hand-wringing about a possible AI bubble.

    The 70 stocks that comprise the Global X Artificial Intelligence & Technology ETF (AIQ) have lost $2.4 trillion in value since Oct. 29, according to an Investor’s Business Daily analysis.

    The November 2025 Bank of America Global Fund Manager Survey reported 45% of respondents believe an AI equity bubble is the most significant current market risk. More than half of the money managers believed AI stocks are already in bubble territory.

    Are we approaching an AI bubble? And if that’s uncertain, how do you protect your portfolio if your AI investments turn against you?

    Read more: Thinking of buying Nvidia stock? Consider buying others just like it.

    Past failures often haunt stock market investors. The dot-com bust of the late 1990s and early 2000s is a recurring nightmare for some. Are we approaching a similar stock market cliff? Two noted analysts disagree.

    Carolyn Barnette, head of market and portfolio insights at BlackRock, doesn’t see the symptoms of a dot-com crash. Today’s AI investments are “a fundamentally different landscape — one supported by real profitability, disciplined capital allocation, and broad-based adoption,” she wrote in a report to advisors last week.

    “Unlike the speculative frenzy of the late 1990s and early 2000s, today’s technology leaders are anchored by fundamental stability. Strong profitability, steady cash generation, and healthy balance sheets provide a foundation for continued investment and growth,” Barnette wrote in the analysis.

    Barnette notes that, unlike the dot-coms, AI capital investments are being funded by earnings and cash rather than debt.

    “This self-financing makes the sector more resilient to higher interest rates and less vulnerable to liquidity shocks. Many companies are investing from a position of strength, not speculation,” Barnette wrote.

    Yet, many experts with their own charts disagree, saying we are in an AI investment bubble.

    One is Apollo Global Management chief economist Torsten Sløk.

    “The difference between the IT bubble in the 1990s and the AI bubble today is that the top 10 companies in the S&P 500 today are more overvalued than they were in the 1990s,” Sløk wrote in a July analysis.

    Sløk believes the overheated AI sector was born out of the zero-interest-rate environment before March 2022. When the Federal Reserve began raising interest rates, tech companies stopped hiring, borrowing costs rose, and investor risk appetites diminished.

    “The bottom line is that the bubble in AI valuations was simply the result of a long period with zero interest rates,” Sløk wrote in May. “With upward pressures on inflation coming from tariffs, deglobalization, and demographics, interest rates will remain high and continue to be a headwind to tech and growth for the coming years.” (Disclosure: Yahoo Finance is owned by Apollo Global Management.)

    AI bubble

    Read more: Create a stock investing strategy in 3 steps

    If the experts disagree, perhaps it’s best to prepare for both AI scenarios: boom and bubble.

    Kevin Gordon, Schwab’s senior investment strategist, said investors should first determine what kind of AI investments they hold.

    “I think one of the ways to hedge and diversify around [the risk] is actually thinking about the difference and the important distinction between the AI creators and the AI adopters,” Gordon said in a Schwab video released in September. “So much of the focus over the past couple of years has been on the creators. We’ve spent a lot of time thinking about who are the ‘adopters’ and who could benefit from the technology.”

    He believes adopters are going to become a critical next leg of the investment cycle for industries that don’t have the ability to be an AI creator. Consider diversifying your portfolio with those who benefit from the technology rather than those who create it.

    Gordon also believes investors should periodically revisit their investment time horizon and risk tolerance. When will you begin tapping your investments for cash, and are your investments built for that inevitability?

    “I think this is one of those moments where you need to look at your portfolio to see where those align,” Gordon said.

    The UBS chief investment office recommends international exposure, high-grade bonds, and gold to protect a portfolio.

    “We think the equity bull market has further room to run, and have reiterated that an easing Federal Reserve, durable earnings growth, and AI investment spending support our attractive view on US equities. But we also believe investors should diversify their portfolios beyond US equities,” UBS said in a note to clients.

    UBS highlighted three “appealing opportunities”:

    • China’s tech sector and Japanese equities: “We particularly like China’s tech sector as we believe Beijing’s push for tech self-sufficiency and innovation creates a foundation for the rally to continue.”

    • Quality bonds: “We would expect quality bonds to rally in the event of fears about the health of the US economy or the durability of the AI rally. With yields still at relatively elevated levels, the risk-return profile for quality bonds is appealing.”

    • Gold: “Gold remains an effective portfolio diversifier and hedge against political and economic risks, and we view this week’s sell-off as a healthy consolidation. While volatility is likely to persist in the near term, lower real interest rates, a weaker US dollar, and concerns over government debt or geopolitical uncertainty should continue to boost demand for bullion.”

    Read more: How to invest in gold in 4 steps

    [ad_2]

    Source link

  • Is the Federal Reserve likely to cut interest rates in December? Here’s what economists say.

    [ad_1]

    Just a few weeks ago, a December interest rate cut was viewed as practically a done deal by many economists. Now, with fresh government data showing solid U.S. job growth in September, many forecasters think the Federal Reserve is likely to hold off lowering borrowing costs when policy makers meet next month.

    The probability of a Federal Reserve rate cut now stands at 22%, down from a likelihood of 97% as of mid-October, according to economists polled by financial data company FactSet. CME Fedwatch, a tool that forecasts rate cuts based on changes in the 30-Day Fed Funds futures prices, gives slightly better odds of a reduction, at about 41%. 

    Translation: Wall Street economists and traders alike expect the Fed to leave rates unchanged at its next two-day meeting on Dec. 9-10. That would amount to a pause in the central bank’s recent move to lower lending rates, coming after two consecutive cuts in September and October. 

    The shift in expectations for future Fed rate cuts follows a six-week blackout in federal economic data because of the government shutdown, a hiatus that hindered the central bank’s ability to assess key economic trends. Last month, Fed Chair Jerome Powell cautioned that a December rate cut wasn’t a “foregone conclusion,” pointing to signs that the job market remains on firm ground. 

    The Fed is more likely to lower its benchmark federal funds rate — or what banks charge each other for short-term loans — if officials conclude that the job market and broader economic growth are in danger of stalling. But Thursday’s jobs data showed that employers continued to hire at a healthy clip in September. 

    “Given that today’s numbers were not a bad as feared, in conjunction with hawkish statements from the Fed recently, it does appear that the Fed will skip a cut in December,” Preston Caldwell, chief U.S. economist at Morningstar, said in an email. 

    He added, “But with the negative trend in labor markets remaining in place, we’d expect the Fed to resume cutting in their next meeting in January 2026, if they don’t cut this December.”

    The federal funds rate is currently sitting in a range of 3.75% to 4%.  

    A move by the Fed to dial back rate cuts in 2026 could keep borrowing costs for homes and cars elevated. Pricier mortgages and auto loans are also reinforcing the feeling among many Americans, reflected in sentiment polls, that the cost of living remains too high.

    Mixed economic picture

    The Federal Reserve’s so-called dual mandate requires monetary policymakers to keep both inflation and unemployment in check. The central bank cited the slowing labor market when it twice trimmed borrowing costs this fall.

    But the latest payroll gains released Thursday showed that employers hired 119,000 people in September — more than double what most economists had forecast. The nation’s unemployment rate ticked up from 4.3% to 4.4%, the highest level since October of 2021. The increase in the jobless rate suggests more people are re-entering the workforce to search for a job, economists said. 

    At the same time, inflation has edged up, climbing at an annual rate of 3% in September. That puts pressure on the Fed to keep price increases from spiraling higher, with some policymakers expressing concern over persistent inflation.

    The mixed economic picture is complicated by the absence of more recent official data. The Bureau of Labor Statistics said this week that it will fold some October jobs data into its November report, which is set for release after the Fed’s next meeting, on Dec. 16.

    “September’s payroll numbers may have surprised to the upside, but in terms of the Fed’s December interest rate decision, October is what mattered,” Ellen Zentner, chief economic strategist for Morgan Stanley Wealth Management, said in an email. “With that data now delayed until after the FOMC meeting, the Fed’s rate-cut path has more question marks.”

    She added, “Overall, the available economic data has supported a December cut, but given the Fed’s cautious bent, it may choose to wait until it has more numbers in hand.” 

    Edited by

    Alain Sherter

    [ad_2]

    Source link

  • HELOC rates today, November 17, 2025: Less likely to fall more this year if the Fed delays

    [ad_1]

    The current national average HELOC rate hasn’t been this low all year, according to the analytics company Curinos. Home equity line of credit rates may not decrease significantly before the end of the year, as the Federal Reserve hints that another rate cut might not occur until 2026.

    According to Curinos data, the average weekly HELOC rate is 7.64%. This rate is based on applicants with a minimum credit score of 780 and a maximum combined loan-to-value ratio (CLTV) of 70%.

    Homeowners have a huge 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 just over 6%, homeowners may not want to let go of their primary mortgage anytime soon, so selling the house may not be an option. Why give up your 5%, 4% — or even 3% mortgage?

    Accessing some of the value locked into your house 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 has moved down to 7.00%. If a lender added 0.75% as a margin, the HELOC would have a rate of 7.75%.

    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.

    You don’t have to give up your low-rate mortgage to access your home’s equity. 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 5.99% for 12 months on lines up to $500,000. That’s an introductory rate that will convert to a variable rate later. 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 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 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. 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 withdraw the full $50,000 from a home equity line of credit 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.

    [ad_2]

    Source link

  • The economy survived the government shutdown — but all is not well

    [ad_1]

    The economy survived the government shutdown but all is not well

    [ad_2]

    Source link

  • ECB’s Key Interest Rate Is in a Good Place, Says Schnabel

    [ad_1]

    The European Central Bank’s key interest rate is unlikely to change unless the eurozone economy is hit by another big shock, a member of its executive board said Wednesday.

    The ECB last month left its key rate at 2% for the third straight meeting, with inflation close to its target.

    Copyright ©2025 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

    [ad_2]

    Paul Hannon

    Source link

  • HELOC rates today, November 7, 2025: Lenders are dropping their HELOC rates by 0.25% or more

    [ad_1]

    According to analytics company Curinos, the current national average HELOC rate is 7.64%. Yahoo Finance is seeing home equity line of credit interest rates dropping by 0.25% or more at national lenders. Shop more than one HELOC lender to find your best offer.

    According to Curinos data, the average weekly HELOC rate is 7.64%, down 40 basis points since January. This rate is based on applicants with a minimum credit score of 780 and a maximum combined loan-to-value ratio (CLTV) of 70%.

    Homeowners have an impressive 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 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. Why give up 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 has fallen to 7.00% in the past week. If a lender added 1% as a margin, the HELOC would have a rate of 8.00%.

    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 for the best terms.

    National HELOC rates can include “introductory” offers 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 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 later. 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 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 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.

    For homeowners with low primary mortgage rates and a significant amount of equity in their house, it’s likely one of the best times to take out 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 probably not worth taking on long-term debt.

    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.

    [ad_2]

    Source link

  • Bank of Canada Gov. Macklem Tells Lawmakers Rate Policy at ‘Right’ Level

    [ad_1]

    OTTAWA—Bank of Canada Gov. Tiff Macklem told lawmakers Wednesday that central-bank policymakers believe the current rate policy appears appropriate to balance inflation risks while providing the economy with support.

    His opening remarks before the Canadian legislature’s finance committee largely mirrored his comments when announcing a quarter-point cut last week, taking the benchmark interest rate to 2.25%—or 2.75 percentage points lower over a 16-month period.

    Copyright ©2025 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

    [ad_2]

    Paul Vieira

    Source link

  • U.K. Treasury Chief Says Lowering Inflation Will Be Budget Focus

    [ad_1]

    The U.K. government’s upcoming budget will focus on lowering inflation and paving the way for the Bank of England to lower its key interest rate, treasury chief Rachel Reeves said Tuesday.

    In a speech, Reeves also said the Nov. 26 budget would aim to lower the government’s debt, but also protect public services. She didn’t rule out a rise in taxes on households, which many economists see as the only option left to the government if it is to achieve its other goals.

    Copyright ©2025 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

    [ad_2]

    Paul Hannon

    Source link

  • What does the Fed’s interest rate cut mean for you?

    [ad_1]



    What does the Fed’s interest rate cut mean for you? – CBS News










































    Watch CBS News



    The Federal Reserve cut its benchmark interest rate by 0.25 percentage points on Wednesday for the second time this year. CBS News MoneyWatch correspondent Kelly O’Grady explains what that means for consumers.

    [ad_2]
    Source link

  • A divided Fed

    [ad_1]

    Dissent at the Fed meeting: For the second time this year, the Federal Reserve Board cut interest rates by a quarter point—the lowest level in three years. “This remains a very divided Fed, as evidenced by the fact that two officials cast dissenting votes in opposite directions,” reports The New York Times. “One wanted a bigger, half-point cut; another wanted no cut at all. The split stems not only from divergent forecasts about the economy but also risk tolerances around allowing the labor market to weaken or inflation to stay elevated.”

    This is consistent with the previous meetings: Back at July’s meeting, two board members disagreed with the final decision to hold rates steady. At September’s meeting, President Donald Trump appointee Stephen Miran—who had just been appointed—called for a half-point cut instead of a more cautious quarter-point cut (like the rest of the board agreed to). Then in this meeting, Miran said much the same, but was opposed by Jeffrey Schmid, who advocated no decrease at all.

    “The decision to lower interest rates by 25bps in October was never in doubt, but the unexpected hawkish dissent from a regional Fed president highlights that future moves are becoming more contentious,” Michael Pearce, deputy chief U.S. economist at Oxford Economics, told CNBC. “We expect the Fed to slow the pace of cuts from here.”

    “A further reduction in the policy rate at the December meeting is not a foregone conclusion—far from it,” said Federal Reserve Chair Jerome Powell in a post-meeting press conference.

    Powell noted that, though the economy looks strong in the aggregate, things look rather bifurcated right now: Spending by high-income households is possibly obscuring some of the pain and pressure felt by low-income households. He signaled that poor Americans are feeling greater financial pressure than before, citing the growing number of defaults on subprime auto loans. (“The percentage of subprime borrowers—those with credit scores below 670—who are at least 60 days late on their car loans has doubled since 2021 to 6.43%, according to Fitch Ratings,” reports CNN.)

    He also conveyed concerns about tariffs raising inflation (the effects of which still have not fully been felt, due to stockpiling by large retailers, which is due to run out soon) and a weakening labor market.

    Ceasefire updates: In yesterday’s Roundup, I was insufficiently careful in my reporting of the Gazan death toll—the 100 allegedly killed by the Israel Defense Forces (IDF) is, after all, reported by the health ministry there, which is controlled by Hamas, so it is very hard to tell whether such numbers are reliable.

    Since then, the death toll reported by the ministry of health has risen to 104, with 66 of those alleged to be women and children, and Israeli government sources say “dozens” of top Hamas commanders were taken out, naming 26 militants specifically.

    It is very hard to tell whether the Gaza Ministry of Health numbers are accurate, and Hamas has repeatedly used human shields in an attempt to protect its combatants from Israeli strikes. Now, amid the renewed fighting, both sides are becoming further entrenched: Though Israel says it remains committed to maintaining (resuming?) the truce, Hamas has said, per Associated Press reporting, that “it would delay handing over the body of another hostage to Israel because of the strikes.” This most recent round of fighting was allegedly sparked by Hamas forces violating the U.S.-brokered ceasefire by attacking IDF soldiers, killing a reservist (Master Sgt. Yona Efraim Feldbaum) on Tuesday. The Qatari prime minister said, following this incident, that mediators are renewing their push to “get [Hamas] to a point where they acknowledge that they need to disarm.”

    Trump, fresh off his victorious Knesset speech just two weeks ago, doesn’t seem all too concerned: “They killed an Israeli soldier. So the Israelis hit back. And they should hit back,” Trump told reporters on Air Force One yesterday. “Nothing is going to jeopardize” the ceasefire, he added, with characteristic overconfidence.

    “We actually met with people [who] were leading [Hamas], and… I think they’re unhappy when they see some people being killed,” he added, rather confusingly (given that he’s referencing…a terrorist group).

    “The ceasefire is holding. That doesn’t mean that there aren’t going to be little skirmishes here and there,” Vice President J.D. Vance told reporters.

    Scenes from New York: 

    Related: “The socialist housing plan for New York City“

    QUICK HITS

    • “Transit is one of the very few things that makes New York affordable,” Metropolitan Transportation Authority head Janno Lieber tells a group of independent New York journalists, critiquing Zohran Mamdani’s free-buses plan. “It’s not an affordability problem, compared to the whole country, people spend a lot less on transportation as part of their budgets. It’s an affordability solution, but we want to make it more so. And the Fair Fares program has been successful with targeting affordability. But what’s good about Fair Fares is you can use that discount if you’re low-income for the subway or the bus. So one of the first things I want to get into is, why would we say the bus is free, but [not] the subway—what does that mean? Are people going to ride the bus instead of the subway?…Why is the bus the whole focus? Let’s talk about how to make transit—it’s affordable, it’s a good thing it is, but let’s talk about how to make it more affordable. And we do have tools like the Fair Fares program, where we could raise the eligibility threshold.” (Also, interestingly, future bus revenues are pledged to the bondholders who finance the whole Metropolitan Transportation Authority system; bondholder approval—which they’re not going to give—would be necessary before changing the bus fares in the manner Mamdani proposes.)
    • Things appear to be heating up near Venezuela:
    • A predictable consequence of ratcheting up tariffs: Canada is now shoring up trade ties with Asia. Bloomberg has more.
    • This strikes me as such a misleading headline from Politico, designed to elicit rage: “RFK Jr.’s top vaccine adviser says he answers to no one.” But the actual interview, which is with Martin Kulldorff (former Just Asking Questions guest), is full of very wise chunks, in which Kulldorff talks about how the health secretary, Robert F. Kennedy Jr., has asked him to try to just…impartially follow the science and sift through the available evidence, how Kulldorff is attempting to maintain a posture of humility regarding what we know and what we don’t (including on topics like adverse vaccine reactions), and how he thinks COVID-19 vaccine mandates really damaged public trust in the health authorities.
    • “In long-awaited cuts just months after completing its $8 billion merger with Skydance, Paramount has begun layoffs set to impact about 2,000 employees,” reports the Associated Press. This amounts to about 10 percent of Paramount’s workforce. Roughly half of those will be carried out immediately, while the rest will be done more steadily over the coming weeks and months. More here:
    • More of a conservative take than an explicitly libertarian one, but there’s certainly something interesting in here about changing norms and the declining stigma of welfare, which is probably a bad social indicator:

    [ad_2]

    Liz Wolfe

    Source link

  • What to expect from the Fed’s interest rate decision

    [ad_1]



    What to expect from the Fed’s interest rate decision – CBS News










































    Watch CBS News



    The Federal Reserve on Wednesday will announce its decision on if it will cut its benchmark interest rate again. CBS News MoneyWatch correspondent Kelly O’Grady explains what to expect.

    [ad_2]
    Source link

  • ‘Everyone is doing well’: President Trump praises economy amid layoffs, potential SNAP crisis

    [ad_1]

    ‘Everyone is doing well’: President Trump praises economy amid layoffs, potential SNAP crisis

    President Trump promotes economic prosperity during his visit to Japan, while layoffs and a federal shutdown threaten millions back in the U.S.

    Updated: 3:03 PM PDT Oct 28, 2025

    Editorial Standards ⓘ


    White House Correspondent

    President Donald Trump is promoting Japanese companies investing $550 billion in the United States while visiting the East Asian country. The president said the funds would be “at my direction” as part of a trade framework secured with Japan. The president also boasted about the U.S. economy, despite contrasting economic challenges.”Well, everyone in our country is now doing well. My first term, we built the greatest economy in the history of the world. We had an economy like nobody has seen before now. We’re doing it again, but this time, actually, it’s going to be much bigger, much stronger,” Trump said.The president highlighted the stock market reaching all-time highs, but economists point to other indicators that tell a different story. Amazon announced it is cutting 14,000 jobs, UPS is eliminating roughly 48,000 positions and closing more than 90 buildings as part of a turnaround plan, and Target, Ford, and GM have also announced layoffs amid slowing demand. Additionally, the federal government shutdown threatens food aid benefits for more than 40 million Americans as soon as Nov. 1, and September’s CPI data showed prices are rising again just as the Federal Reserve has cut interest rates to support the economy.”I don’t really understand the optimism to be perfectly honest, and I’m a very optimistic, very little of a ‘doomer’ person. We’ve had seven months in a row of contractions and manufacturing output. The labor market cooled to such an extent that it forced the Fed to cut rates in September,” said Jai Kedia from the Cato Institute.President Trump is preparing to meet with Chinese President Xi Jinping amid the ongoing U.S.–China trade war. Treasury Secretary Scott Bessent said the two countries have reached a “very successful framework” ahead of their summit, covering tariffs, rare-earth exports and large U.S. agricultural purchases.Meanwhile, 26 states and Washington, D.C., are suing the USDA, arguing the agency has contingency funds that could be used to maintain SNAP benefits during the shutdown. In a memo, the USDA stated that those funds can only be used for a natural disaster or other emergency, not to operate during a shutdown, and placed the blame on Senate Democrats, saying, “We are approaching an inflection point for Senate Democrats. Continue to hold out for the Far-Left wing of the party or reopen the government so mothers, babies, and the most vulnerable among us can receive timely WIC and SNAP allotments.” The states argue the law requires the USDA to issue benefits as long as money is available.It comes after another failed vote occurred today in the Senate. A federal judge in San Francisco has issued a preliminary injunction blocking the Trump administration from firing federal workers during the government shutdown. This move comes as a lawsuit challenges recent job cuts in education, health, and other areas.For more coverage from the Washington News Bureau here:

    WASHINGTON —

    President Donald Trump is promoting Japanese companies investing $550 billion in the United States while visiting the East Asian country. The president said the funds would be “at my direction” as part of a trade framework secured with Japan.

    The president also boasted about the U.S. economy, despite contrasting economic challenges.

    “Well, everyone in our country is now doing well. My first term, we built the greatest economy in the history of the world. We had an economy like nobody has seen before now. We’re doing it again, but this time, actually, it’s going to be much bigger, much stronger,” Trump said.

    The president highlighted the stock market reaching all-time highs, but economists point to other indicators that tell a different story.

    Amazon announced it is cutting 14,000 jobs, UPS is eliminating roughly 48,000 positions and closing more than 90 buildings as part of a turnaround plan, and Target, Ford, and GM have also announced layoffs amid slowing demand.

    Additionally, the federal government shutdown threatens food aid benefits for more than 40 million Americans as soon as Nov. 1, and September’s CPI data showed prices are rising again just as the Federal Reserve has cut interest rates to support the economy.

    “I don’t really understand the optimism to be perfectly honest, and I’m a very optimistic, very little of a ‘doomer’ person. We’ve had seven months in a row of contractions and manufacturing output. The labor market cooled to such an extent that it forced the Fed to cut rates in September,” said Jai Kedia from the Cato Institute.

    President Trump is preparing to meet with Chinese President Xi Jinping amid the ongoing U.S.–China trade war. Treasury Secretary Scott Bessent said the two countries have reached a “very successful framework” ahead of their summit, covering tariffs, rare-earth exports and large U.S. agricultural purchases.

    Meanwhile, 26 states and Washington, D.C., are suing the USDA, arguing the agency has contingency funds that could be used to maintain SNAP benefits during the shutdown.

    In a memo, the USDA stated that those funds can only be used for a natural disaster or other emergency, not to operate during a shutdown, and placed the blame on Senate Democrats, saying, “We are approaching an inflection point for Senate Democrats. Continue to hold out for the Far-Left wing of the party or reopen the government so mothers, babies, and the most vulnerable among us can receive timely WIC and SNAP allotments.”

    The states argue the law requires the USDA to issue benefits as long as money is available.

    It comes after another failed vote occurred today in the Senate. A federal judge in San Francisco has issued a preliminary injunction blocking the Trump administration from firing federal workers during the government shutdown. This move comes as a lawsuit challenges recent job cuts in education, health, and other areas.

    For more coverage from the Washington News Bureau here:

    [ad_2]

    Source link

  • Federal Reserve meets Wednesday for interest rate decision. Here’s what economists predict.

    [ad_1]

    The Federal Reserve is set to make its next interest rate decision on Wednesday, even as a near-total blackout of federal economic data continues amid the government shutdown.

    The Labor Department, however, on Friday released one key report ahead of its meeting: the Consumer Price Index. That report showed that the inflation rate rose at a pace of 3% last month, cooler than expected, as the impact of President Trump’s wide-ranging tariffs have so far been more muted than economists have forecast. 

    Economists say the softer inflation report likely opens the door to a rate cut on Wednesday.

    “Concerns about tariffs driving prices higher are still not showing up in most categories,” Scott Helfstein, Global X’s head of investment strategy, said Friday in an email. “Nothing in the inflation print should stop the Fed from cutting rates next week. Yes, prices are higher, but not enough to keep them from helping the economy,” he added.

    There’s a 96.7% probability that the Fed will cut its benchmark rate by 0.25 percentage points on Wednesday, according to CME FedWatch, which bases its predictions on 30-Day Fed Funds futures prices. 

    A quarter-point cut would bring down the benchmark rate to a range of between 3.75% to 4%, down from its current range of between 4% to 4.25%, and mark the Fed’s second rate cut this year. 

    What’s the argument for cutting rates?

    The Federal Reserve has a so-called dual mandate to keep both inflation and unemployment low. When inflation is soaring — such as when it hit a 40-year high of 9.1% in June 2022 — the Fed ratchets rates higher to make borrowing more expensive, which in turn dissuades consumers and businesses from spending, tempering inflation. 

    But a weak labor market can be bolstered by lower interest rates, because it’s easier for businesses to expand and hire more workers if it’s less expensive to borrow money.

    When Powell last month announced the Fed’s first rate cut of 2025, he signaled the central bank was growing increasingly concerned about a sharp slowdown in the labor market. “In this less dynamic and somewhat softer labor market, the downside risks to employment appear to have risen,” he said in September.

    However, the monthly jobs report for September wasn’t released earlier this month due to the federal shutdown. In an Oct. 14 speech, Powell acknowledged the data halt, yet added that the central bank has access to “a wide variety of public- and private-sector data that have remained available.”

    According to those sources of information, “the outlook for employment and inflation does not appear to have changed much since our September meeting,” Powell noted. 

    Friday’s CPI report “should keep the Fed focused on the labor market in terms of the near-term policy trajectory. In the absence of the September jobs report, an October cut appears to be a done deal,” Bank of America economists noted in a Friday research report. 

    How would a rate cut impact your money?

    While a quarter-point rate cut is relatively small, it would come after September’s reduction — and economists are also expecting the Fed to usher in a third cut at its December meeting. Together, that means the benchmark rate by year-end could sit 0.75 percentage points lower than it was in January. 

    That would help reduce rates for credit cards and loans such as home equity lines of credit, or HELOCs. Those types of credit products are based on the prime rate, or the interest rate that banks charge each other, and which in turn is based on the Fed’s benchmark rate. 

    Mortgage rates, meanwhile, have already dipped ahead of the Fed’s rate decision. While mortgage rates aren’t set by the Fed, they’re heavily influenced by its policy moves, as well as bond market investors’ expectations for economic growth and inflation.

    The average 30-year fixed-rate mortgage dropped to 6.19% as of Oct. 23, marking their lowest level in a year, according to Freddie Mac. Homebuyers might not see much more of a break, at least in the near-term, economists said.

    “Mortgage rates have moved down notably in advance of the Fed’s meeting, hitting their lowest level in more than a year, but further declines will depend on new developments,” noted Realtor.com’s chief economist Danielle Hale in an email. “The Fed’s decisions are anticipated by the market, which means that the upcoming rate cut and several more over the next few months are already largely priced in.”

    Edited by

    Anne Marie D. Lee

    [ad_2]

    Source link

  • Russia’s Central Bank Cuts Key Rate as New Sanctions Loom

    [ad_1]

    Russia’s central bank on Friday lowered its key interest rate for a fourth straight meeting as an already slowing economy braces for the impact of fresh sanctions from the U.S. and the European Union in response to President Vladimir Putin’s continued war on Ukraine.

    The Bank of Russia cut its key rate to 16.5% from 17%, having begun to lower borrowing costs from a recent peak of 21% in June. The move was smaller than previous cuts.

    Copyright ©2025 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

    [ad_2]

    Paul Hannon

    Source link

  • Former BLS chief warns Powell is “flying blind” at a pivotal time for the Fed | Fortune

    [ad_1]

    The Federal Reserve faces an unprecedented challenge as it prepares to set interest rates next week—making its decision with almost no economic data available.

    The government shutdown has halted the release of most U.S. economic statistics, including the monthly jobs report. However, the Fed also recently lost access to one of its main private sources of backup data. 

    Payroll-processing giant ADP quietly stopped sharing its internal data with the central bank in late August, leaving Fed economists without a real-time measure that had covered about one-fifth of the nation’s private workforce. For years, the feed had served as a real-time check on job-market conditions between the Bureau of Labor Statistics’ monthly reports. Its sudden disappearance, first reported by the Wall Street Journal, could leave the Fed “flying blind,” former Bureau of Labor Statistics commissioner Erica Groshen said.

    Groshen told Fortune that, in her decades working at the BLS and inside the Fed, the loss of ADP data is “very concerning for monetary policy.”

    The economist warned that at a moment when policymakers are already navigating a fragile economy—Fed Chair Jerome Powell has said multiple times that there is no current “risk-free path” to avoid recession or stagflation—the data blackout raises the risk of serious missteps. 

    “The Fed could overtighten or under-tighten,” Groshen said. “Those actions are often taken too little and too late, but with less information, they’d be even more likely to be taken too little too late.” 

    Rupture after years of collaboration

    Since at least 2018, ADP has provided anonymized payroll and earnings data to the Fed for free, allowing staff economists to construct a weekly measure of employment trends. The partnership is well-known to both Fed insiders and casual market watchers. However, according to The American Prospect, ADP suspended access shortly after Fed Governor Christopher Waller cited the data in an Aug. 28 speech about the cooling labor market.

    Powell has since asked ADP to restore the arrangement, according to The American Prospect. 

    Representatives at ADP did not respond to Fortune’s request for comment. The Fed declined to comment.

    Groshen said there are several plausible reasons why ADP might have pulled the plug. One possibility, she said, is that the company found a methodological issue in its data and wanted to fix it before continuing to share information used in monetary policy. 

    “That would actually be a responsible decision,” she told Fortune, noting that private firms have more flexibility than federal agencies but less institutional obligation to be transparent about errors.

    Another explanation, Groshen said, could be internal or reputational pressure. After Waller mentioned the collaboration publicly, ADP may have worried about how it looked to clients or shareholders. 

    “You could imagine investors saying, ‘Why are we giving this away for free? The Fed has money,’” she said. The company might also have wanted to avoid being seen as influencing central-bank decisions, especially in a politically charged environment.

    Whatever the motivation, Groshen said the episode underscores how fragile public-private data relationships remain. Without clear frameworks or long-term agreements, companies can withdraw at any time.

    “If policymakers build systems around data that can vanish overnight,” she said, “that’s a real vulnerability for economic governance.”

    A data blackout at a critical moment

    The timing could hardly be worse. 

    On Thursday next week, the Federal Open Market Committee meets to decide whether to lower interest rates again, following a long-awaited quarter-point cut in September. With the BLS pausing most releases under its shutdown contingency plan, official figures on employment, joblessness, and wages have been delayed—starting with the September report and possibly extending into October.

    In the absence of real-time data, Fed economists are relying on a patchwork of alternatives: state unemployment filings, regional bank surveys, and anecdotal reports from business contacts. Groshen called those “useful but incomplete,” adding that the lack of consistent statistical baselines makes monetary policy far more error-prone.

    She advocated for the BLS to receive “multiyear funding” from Congress so that it could stay open even during government shutdowns. 

    “I hope that one silver lining to all these difficulties will be a realization on the part of all the stakeholders, including Congress and the public, that our statistical system is essential infrastructure that needs some loving care at the moment,” Groshen said.

    [ad_2]

    Eva Roytburg

    Source link

  • U.K. Inflation Unexpectedly Holds Steady

    [ad_1]

    The U.K.’s annual rate of inflation in September unexpectedly held at the pace of the previous month, raising the chance that Bank of England policymakers could cut interest rates later this year, despite price rises remaining at a level still well above the central bank’s target.

    Consumer prices were up 3.8% compared with the same month of last year, the Office for National Statistics said Wednesday, almost double the central bank’s 2% target and the same rate as August. Economists polled by The Wall Street Journal expected a higher rate of 4.0%.

    Copyright ©2025 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

    [ad_2]

    Ed Frankl

    Source link

  • Fed Is Expected To Cut Rates Again—but Uncertainty Grows Over Lack of Jobs Data During Shutdown

    [ad_1]

    The Federal Reserve is widely expected to lower interest rates by a quarter of a percentage point when policymakers meet next week, but concerns are mounting over the lack of reliable employment figures.  

    Since the start of the federal government shutdown three weeks ago, the central bank has been cut off from vital economic data that the Fed typically relies on to guide its policy decisions. Analysts have compared the situation to a pilot attempting to land a plane blind.  

    Financial markets are all but certain that the Fed’s Board of Governors will lower its benchmark rate to the 3.75%–4% range during the Federal Open Market Committee meeting scheduled for Oct. 28-29. 

    Fed Gov. Stephen Miran, recently appointed to the board by President Donald Trump, has been advocating for a larger half-point cut, echoing the president’s calls for more aggressive action.

    But Fed Chair Jerome Powell so far has taken a more moderate approach, referring to reductions as “risk management” measures.

    Looking ahead, opinions are divided on what the central bank will do come December. 

    A recent poll of 117 economists conducted by Reuters found that fewer than three-quarters expect another cut before the end of the year.  

    Fed faces jobs data blackout

    The Federal Reserve has a dual congressional mandate to promote maximum employment and keep inflation as close to its 2% target as possible.

    But since the nonessential parts of the federal government ceased operations on Oct. 1, official jobs numbers from the U.S. Bureau of Labor Statistics have not been released since early September, leaving the Fed with a murky view of economic risks.

    The latest available data indicates that the labor market has softened over the summer, with just 22,000 jobs added in August and the unemployment rate ticking up to 4.3% from 4.2% the previous month.

    Figures coming out of the private sector suggest that the job market remains mostly in a holding pattern, with no major fluctuations in either layoffs or hiring. 

    New inflation report on the way

    Meanwhile, the Bureau of Labor Statistics is scheduled to release the consumer price index for September on Thursday, after some furloughed staffers were ordered back to work to compile the latest inflation data. 

    Economists polled by Reuters expect the report to show that consumer inflation inched up to 3.1% in September from 2.9% in August, injecting uncertainty into the prospect of an additional Fed rate cut at the end of 2025.

    Typically, if the Fed observes a sharp slowdown in hiring, it would be inclined to cut the federal funds rate, while rising inflation would make it more likely to delay another rate reduction.

    What it means for the housing market

    It’s important to remember that the Fed does not directly set mortgage rates, but rather influences them in a more roundabout way by setting the federal funds rate.

    However, the information vacuum created by the government shutdown that’s clouding the Fed’s decision-making process could negatively influence the housing market in different ways.

    Jobs data informs Fed policy decisions, which anchor the 10-year Treasury and, by extension, mortgage rates. Without that benchmark, it is harder to predict exactly what the central bank will do during its upcoming meetings.

    Additionally, not knowing the true state of the labor market compounds the uncertainty already weighing on would-be homebuyers and sapping demand.

     

    [ad_2]

    Snejana Farberov

    Source link

  • Mortgage and refinance interest rates today, October 12, 2025: Best week of the year to buy a house

    [ad_1]

    Mortgage rates are down today. According to Zillow, the national average 30-year fixed rate is down two basis points to 6.28%, and the 15-year fixed mortgage rate has inched down by two basis points to 5.56%.

    According to new data from Realtor.com, today marks the start of the best week of the year to buy a house. Mortgage rates shouldn’t plummet anytime soon, so if you’re otherwise ready to buy a home, now could be a great time.

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

    • 30-year fixed: 6.28%

    • 20-year fixed: 5.90%

    • 15-year fixed: 5.56%

    • 5/1 ARM: 6.52%

    • 7/1 ARM: 6.63%

    • 30-year VA: 5.88%

    • 15-year VA: 5.39%

    • 5/1 VA: 5.76%

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

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

    • 30-year fixed: 6.38%

    • 20-year fixed: 5.97%

    • 15-year fixed: 5.76%

    • 5/1 ARM: 6.83%

    • 7/1 ARM: 6.75%

    • 30-year VA: 5.96%

    • 15-year VA: 5.96%

    • 5/1 VA: 5.61%

    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.

    Learn whether now is a good time to refinance your mortgage.

    Use the mortgage calculator below to see how various mortgage terms and interest rates will impact your monthly payments.

    Our free mortgage calculator also considers factors like property taxes and homeowners insurance when determining your estimated monthly mortgage payment. This gives you a more realistic idea of your total monthly payment than if you just looked at mortgage principal and interest.

    The average 30-year mortgage rate today is 6.28%. A 30-year term is the most popular type of mortgage because by spreading out your payments over 360 months, your monthly payment is lower than with a shorter-term loan.

    The average 15-year mortgage rate is 5.56% today. When deciding between a 15-year and a 30-year mortgage, consider your short-term versus long-term goals.

    A 15-year mortgage comes with a lower interest rate than a 30-year term. This is great in the long run because you’ll pay off your loan 15 years sooner, and that’s 15 fewer years for interest to accumulate. But the trade-off is that your monthly payment will be higher as you pay off the same amount in half the time.

    Let’s say you get a $300,000 mortgage. With a 30-year term and a 6.28% rate, your monthly payment toward the principal and interest would be about 1,853, and you’d pay $367,083 in interest over the life of your loan — on top of that original $300,000.

    If you get that same $300,000 mortgage with a 15-year term and a 5.56% rate, your monthly payment would jump to $2,461. But you’d only pay $142,946 in interest over the years.

    With a fixed-rate mortgage, your rate is locked in for the entire life of your loan. You will get a new rate if you refinance your mortgage, though.

    An adjustable-rate mortgage keeps your rate the same for a predetermined period of time. Then, the rate will go up or down depending on several factors, such as the economy and the maximum amount your rate can change according to your contract. For example, with a 7/1 ARM, your rate would be locked in for the first seven years, then change every year for the remaining 23 years of your term.

    Adjustable rates typically start lower than fixed rates, but once the initial rate-lock period ends, it’s possible your rate will go up. Lately, though, some fixed rates have been starting lower than adjustable rates. Talk to your lender about its rates before choosing one or the other.

    Mortgage lenders typically give the lowest mortgage rates to people with higher down payments, great or excellent credit scores, and low debt-to-income ratios. So, if you want a lower rate, try saving more, improving your credit score, or paying down some debt before you start shopping for homes.

    Waiting for rates to drop probably isn’t the best method to get the lowest mortgage rate right now. If you’re ready to buy, focusing on your personal finances is probably the best way to lower your rate.

    To find the best mortgage lender for your situation, apply for mortgage preapproval with three or four companies. Just be sure to apply to all of them within a short time frame — doing so will give you the most accurate comparisons and have less of an impact on your credit score.

    When choosing a lender, don’t just compare interest rates. Look at the mortgage annual percentage rate (APR) — this factors in the interest rate, any discount points, and fees. The APR, which is also expressed as a percentage, reflects the true annual cost of borrowing money. This is probably the most important number to look at when comparing mortgage lenders.

    Learn 6 tips for choosing a mortgage lender.

    According to Zillow, the national average 30-year mortgage rate for purchasing a home is 6.28%, and the average 15-year mortgage rate is 5.56%. But these are national averages, so the average in your area could be different. Averages are typically higher in expensive parts of the U.S. and lower in less expensive areas.

    The average 30-year fixed mortgage rate is 6.28% right now, according to Zillow. However, you might get an even better rate with an excellent credit score, sizable down payment, and low debt-to-income ratio (DTI).

    Mortgage rates aren’t expected to drop drastically in the near future, though they might inch down here and there.

    [ad_2]

    Source link