Interest Rates

If a mortgage lender gives you an answer to this without asking you any questions, say thank you, hang up and call someone else.

Why? Because in today’s world there is no such thing as “today’s interest rate”.

The Fed made a historic and agressive move on Tuesday, when it cut the federal funds rate from 1% to a range of 0% to 0.25%. The federal funds rate is the rate banks charge one another for overnight loans.

What this means for the consumer is that loans based on the prime rate, such as car loans, credit cards, and student loans, should also follow a similar path, making it more attractive for consumers to borrow.