The Federal Reserve Cut Interest Rates

The Federal Reserve cut interest rates again. They first reduced rates a month ago as a response to a weakening job market and slow economic growth. The move should have taken the pressure off wallets and helped to stimulate spending. Yet, it didn’t make much of a difference. That’s why the Fed moved to reduce the rate by another .25 this week. It may not sound like much but any savings that result will come as a big relief to those feeling the effects of inflation. 

With lower interest rates homeowners who bought when rates were higher can refinance and save hundreds per month on their mortgage payments. Meanwhile homebuyers can purchase a new home at a much lower interest rate than in previous years. If you have been in the market for a new or used vehicle, get ready to shop around for the best deal. Pro Tip. Shop for the best car loan rate at a bank versus a dealership. Dealerships price for convenience which means you’ll pay more for a car than necessary. 

When it comes to making big purchases that require financing, it pays to do your research. Even though the Federal Reserve has reduced rates, some lenders may be hesitant to offer the best deal because of their concerns over how our country is doing. Lenders tend to offer better rates when people are working, and the economy is strong. Yet, good deals happen. Convenience shopping is a reality even when it comes to mortgages. Take the time to shop around and you will likely save hundreds a year.

One more thing we want to highlight. With the Federal Reserve cutting interest rates twice within a month, you should see your credit card interest rate getting reduced. Even with a modest reduction in rate, by paying more than the minimum each month on your credit card balance you will pay down your debt more quickly. Take advantage of lower rates while they last!