In this week’s Your Money Matters, Dave Davis shares some key points about the Federal Reserve’s decision to cut interest rates.

Saturday, November 9, 2024, 1:28 p.m

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News on the 6th

TULSA, Okla. –

The Federal Reserve cut its benchmark interest rate for the second time this year, more than two months after an unexpected half-percent cut.

Here are some key points about the Federal Reserve’s interest rate cuts:

1. Borrowing money will eventually become cheaper, with lower rates on mortgages, car loans and credit cards.
2. However, consumers don’t see these interest rate cuts right away.
3. Lenders make money by charging consumers higher rates than the federal funds rate.

Despite the Fed’s significant tapering in September, mortgage rates continued to rise. The average interest rate on a 30-year fixed rate loan is about 6.72%, according to Freddie Mac.

Wait, though, many experts predict there could be more rate cuts.