What to do about your mortgage and home loans now that the Fed has hiked rates again?
Mortgages are not directly linked to the Fed’s interest rate decisions, but instead are fluctuations in the yield on the 10-year Treasury note, the benchmark interest rate for many consumer loans.
As for where mortgage rates are going, look at inflation. If inflation continues to fall, mortgage rates will also fall. But don’t expect them to go back to 3%.
During this time, the rate of change on a home equity line of credit or a fixed rate on a home equity loan will increase because their formulas are tied directly to the home equity interest rate. Fed.
The average home equity loan rate stood at 7.94% as of April 26, much higher than the 6.4% recorded in mid-April last year.
Meanwhile, the average HELOC rate hit 8%, nearly double what it was in mid-April last year, acc
ording to Bankrate.