In a move that hasn’t happen in 11 years, the Federal Reserve cut interest rates today. For many of us who are taking out loans for mortgages, vehicles, and education should feel the relief of rising loan costs.
After several rate hikes over the last few years, the decision to lower the rate comes on the heels of a market change. This will impact your mortgage, home equity loans, credit cards, student loans, and car payments. This change may also affect saving account rates as well.
For our mortgages rates which were already low should take another slight dip. This is great news for anyone buying home and should help first time home buyers. For those of you who have already purchased now is the time to consider a re-fi. Reducing your rate by even a half percent can save owners hundreds a month.
Credit card rates currently are at record highs knocking on the door of 20%. They have steadily increased by 35% in the last 5 years. This change should bring down those APR’s for new card seekers and impact current holders in a few billing cycles.
With auto loans, the cut will likely not have a huge impact on what you pay. There will be some, but nothing like the savings on mortgages. The cuts will positively affect both financing and manufacturing costs with dealers allowing you more negotiating power.