Do you have a home equity loan? If so, you may be waiting for the optimal time to refinance it. And, if you took your loan out late last year when home equity loan rates averaged above 9%, you may hope that time comes soon. While home equity loan interest rates have fallen since late 2023, they may have more room to drop. Recent economic reports suggest that the Federal Reserve could cut its federal funds rate later this year, and rates on home equity loans could fall if that happens.
July 31The next Fed meeting is scheduled for July 30 and July 31, and that meeting can have a profound impact on home equity rates, even if the Fed decides to keep the federal funds rate elevated. That's because something as simple as a comment from the Fed suggesting that future rate cuts are on the horizon could cause home equity rates to fall.