TYLER, Texas — Interest rates are finally going down. The Federal Reserve cut short-term interest rates by a half percent earlier this week. But what does it mean for regular Americans?
Across the country, prospective home buyers have been weighed down by inflation, competition and high lending rates.
Right now, the average mortgage rate for a 30-year fixed is down to about 6.2 percent and 5.29 percent for a 15-year fixed mortgage.
Falling inflation and slowing job gains helped propel the cut.
“Lower interest rates are really going to be meaningful for Americans. As rates go down, we will see things like lower housing costs because mortgage rates fall and we will see more homes get built as the supply of goods and credit increases,” said Jon Donenberg, deputy director of National Economic Council. “For auto loans, we should see those rates go down and credit cards for example become more affordable. And starting a small business will be easier as banks increase their lending.”
Many economists believe the Federal Reserve will continue to cut rates. The board meets two more times before the end of the year.