Rates in Flux as Trump Rattles Iran

Mortgage rates recently hit their lowest point in over three years, hovering just above 6% for 30-year fixed-rate mortgages, according to CBS News. This decline was attributed to factors including the recent announcement of a $200 billion mortgage-backed securities (MBS) purchase and three rate cuts from the Federal Reserve last year.

Potential homebuyers have faced higher-than-average mortgage loan rates in recent years, making the recent drop welcome news. Experts weighed in on whether mortgage rates could fall further without a February Fed meeting, CBS News reported.

In related financial news, saving money remained a challenge in an economy with persistent inflation, CBS News noted. Certificates of deposit (CDs) offered a potential solution, with leading accounts providing higher returns than the current inflation rate. These investments allow individuals to lock in high rates for the term of the CD and are generally insured by the FDIC or NCUA for balances up to $250,000.

For homeowners, borrowing against home equity through HELOCs and home equity loans presented another option. Interest rates on these loans were often lower than those on credit cards and personal loans, CBS News stated. With the average equity level sitting comfortably over $300,000, borrowing with home equity was presented as a smart and effective way to access funds. However, personal loan interest rates remained high, frozen around 12%, while credit card interest rates, though recently declining, were still elevated from a recent record high of 23%, CBS News reported.

For those in the market for a new home or considering refinancing, navigating high mortgage rates and limited inventory remained a challenge, according to CBS News. However, the report emphasized that securing affordable options was not impossible, particularly for applicants with strong credit scores.