The Federal Reserve is poised to cut its benchmark interest rate next month from its 23-year high, with consequences for consumers when it comes to debt, savings, auto loans and mortgages.
Get organized and transform your home with these Insider Deals– Right now, most experts envision three quarter-point Fed cuts — in September, November and December — though even steeper rate cuts are possible.. “The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks.
“If you do so, you'll provide yourself a predictable flow of interest income at rates that should outpace inflation by a pretty healthy margin,” said McBride.“Your credit card bill is not going to plunge the day after the next Fed meeting," cautions LendingTree chief credit analyst Matt Schulz. “Nobody should expect miracles.”
He said it's important to take steps such as seeking a 0% interest balance transfer or a low-interest personal loan. You can also call your credit card issuer to see if you can negotiate a better rate.The Federal Reserve’s benchmark rate doesn’t directly set or correspond to mortgage rates, but it does have an influence, and the two “tend to move in the same direction,” said LendingTree senior economist Jacob Channel.
“I’ve heard from a lot of people who locked in over the course of the past 18 months, when rates were at their peak, already asking whether it’s time to refinance and what savings they could have,” she said. “I think that the outlook is good, and hopefully that spills into the real estate market, and we get more buyers in the market.”
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