Following its March meeting, the Federal Reserve did not change the federal funds rate, keeping the target rate at a range of 5.25-5.50%. A few months ago, many experts predicted that the Fed would start cutting rates in early 2024, but conditions have changed, with inflation being more persistent than expected. And with the Fed keeping rates high, that has influenced the real estate market.
rates are near 9%. But what will happen to home equity rates as the spring evolves, particularly in the face of a potential cut to rates courtesy of the Fed? We asked some experts to weigh in.Considering a home equity loan now? See what rate you could qualify for here today.Home equity loan rate forecast for spring 2024Here's what the experts we spoke to said they're expecting to happen to home equity loan interest rates this season.
rates and home equity loan rates don't always move in unison. rates are typically variable, so they can be more sensitive to short-term changes and Fed policy, whereas home equity loan rates are often fixed for 10 or 15 years, so those depend more on long-term interest rate outlooks. 'The Federal Reserve has signaled it will start lowering interest rates later this year, which means homeowners with
s will see their rates fall in lockstep,' says Dan Green, CEO at Homebuyer.com. 'Rates on home equity loans correlate more closely with 30-year fixed-rate mortgage rates than the fed funds rate, and mortgage rates are expected to drop through the spring and summer months,' adds Green.And while the early 2024 rate cuts that some projected haven't played out yet, the year still isn't that far underway, and a lot can change.