Should you refinance your mortgage in light of the Fed's rate cuts? Here's why holding off until the new year could work to your benefit.

In the post-pandemic era, home equity loan rates and home equity line of credit (HELOC) rates rose as the Federal Reserve increased the benchmark interest rate. While the cost of home equity loans and HELOCs remained affordable compared with credit cards and personal loans, rates were far higher than they've been in recent decades.

Fed watchers see a greater chance the central bank may skip a rate cut at its last meeting of the year in December.

By Howard Schneider WASHINGTON (Reuters) -Strong U.S. economic and inflation data continue to reshape the debate among Federal Reserve policymakers over the pace and extent of interest rate cuts as investors on Friday further downgraded their expectations for a rate reduction at the central bank's December meeting.