What does the recent rate cut mean for you?

On Wednesday, September 18, 2024, the Federal Reserve announced a half a percentage point (0.50%) rate cut that lowered the Prime Rate to 8%.

This rate cut was the Fed's first in four years and could be followed by additional cuts by the end of 2024.

What does this mean for you? Generally speaking, it should lower the cost of borrowing money, especially on variable-rate products like ARMs, HELOCs, and credit cards. For example, cardholders who carry a balance could see a decrease in monthly interest charges. For savings accounts, now might be a good time to lock in your rate on a term certificate, as rates are expected to continue to decrease.

If you have any questions about how this rate decrease might affect you, don't hesitate to contact us.