The Federal Reserve Board today announced that it is cutting the federal funds rate by .75 percent, from 4.25 to 3.5 percent. This could affect the interest rate you pay on: a home equity line of credit, a variable rate home loan, credit cards, and other debt. This should also trickle down to help buyers taking out new loans to purchase homes. To learn more, use the link to read an article from CCN Money.
“Shortly after the Fed announced a reduction of its federal funds rate to 3.5 percent from 4.25 percent, most major banks reduced their prime lending rates by the same amount. Since the Fed rate affects how much consumers pay on credit card debt, home equity lines of credit and auto loans, consumers’ monthly debt obligations should slide along with the rate cut. …”