What you need to know: Consumers looking for a new home over the past couple of years are familiar with unfavorable rates. The Fed bumped interest rates seven times in 2022, resulting in mortgage rates jumping from 3.4 percent to 7.12 percent, finally leveling out at 8 percent in 2023.

Buying a home is typically the largest purchase most people make and buying a home can be a great way to build wealth over time. According to the National Association of Realtors, in September 2024, the U.S. median home price was just over $400k. That means that a one or two percent hike in interest rates can make a big difference in the long term payments and overall price, making a significant impact on how much home shoppers can afford.

What you can do: Those who did find their dream home during the rising interest rate environment might consider refinancing their high-rate mortgage. In addition to lowering the interest rate, refinancing might help you pay off your home more quickly.

In anticipation of potential additional rate cuts, people shopping for a home may want to start comparing rates and talking to lenders now, especially if you are looking to close on a home this fall.

There are many factors to consider when choosing a mortgage provider, including understanding fees, how they are charged, payments, terms, and more.

• Visit our Mortgage Payment Calculator to get your estimated monthly payment amounts
• Ready to apply? Visit our Mortgage Application Page to get started.
• If you are interested in refinancing, you can learn about the process and estimate payments.

What you need to know: Falling interest rates directly impact home equity lines of credit, which might mean it’s a good time to look into a HELOC as an opportunity to tap into your home’s value. A HELOC allows you to use the equity in your home as a secure line of credit. And for homeowner’s that already have a HELOC, dropping interest rates over the next few months may mean it’s a good time to think about tapping into your line.

In either case, once you are ready to use line of credit, you can choose to lock-in your loan or keep the rate variable. These features are very helpful for people to react to uncertainty from the rate environment. In a high-interest rate environment, it may be beneficial to stay with a variable rate in anticipation that rates will eventually go down.

What you can do: The benefit of a HELOC is you don’t have to use the funds immediately. A line of credit remains open for 10 years after your application is approved, so if you are riding the interest wave, looking forward to that kitchen remodel or contemplating a fabulous vacation, now might be the right time to talk to your lender about the process and options available to you.

Not ready to talk to a lender yet? Check out our HELOC Rate and Payment Calculator to estimate what your equity line and payment picture might look like.

What you need to know: As of May 2024, the average annual percentage rate (APR) for a credit card was 22.76%. At this rate, you would need to pay $77.17 per month for three years to pay off a $2,000 balance, including interest fees of $778.10 over that time.

What you can do: If you currently carry a balance on your credit cards, you should see the interest rates begin decrease, although this will vary depending on the card issuer.

Now that interest rates are coming down, you might look for a card with a lower rate. Just remember – when you apply for a new card there are additional factors, including your credit score, outstanding debts, and more, that determine the rate each individual may pay. Be sure to consider other fees associated with the account along with any Rewards or benefits that may be offered.

Beyond looking at different credit card options, debt consolidation using a home equity line of credit or a personal loan might be worth considering.

Visit our Lending Calculator page if you’d like to understand what those options look like.