Question:
The Federal Reserve (also called “The Fed”) lowering interest rates can be good news for which of the following?
A) People with credit card debt
B) Savers with high-yield savings accounts
C) People getting a new mortgage
Answer:
C) People getting a new mortgage
Here’s why:
When the Fed lowers interest rates, mortgage rates often go down as well. That means people looking to buy a home or refinance a mortgage may pay less interest.
However, lower rates typically mean savers earn less interest, and credit card rates usually don’t drop much as they aren’t tied directly.
