The Federal Reserve's big rate cut in September is good news and bad news for consumers.
On the plus side, if you are looking for a loan for a home or auto, interest rates might be getting low enough to significantly lower borrowing costs — if not right now, then by next year. According to CBS News, the typical mortgage could drop into the mid-5 percent range by the end of the year, a significant drop from September's 6.09 percent rate on a 30-year fixed mortgage.
Credit card interest rates average a shocking 24.9 percent his year, according to Lending Tree. But following the Fed's announcement of the 0.5 percentage point cut, at least two lenders, American Express and US Bank, led the way to credit card interest rate cuts, with more credit products expected to follow.
Every silver lining has a cloud, though. While borrowing money has been painful over the last four years or so, saving money has been delightful, with peak rates of 5 percent on savings accounts and certificates of deposit. Those rates have been steadily declining throughout 2024 and are expected to continue dropping slowly.