Home loan Learning the basics
25 percent, which it reached in late 2006 and early 2007. Although the Fed's latest rate cut did not surprise financial analysts, analysts were unsure how much farther the Fed would be willing to cut. Borrowers should benefit from the rate cut. Consumer interest rates on credit cards, auto loans, mortgages, and other types of debt are determined independently by lending companies, but the Fed's rates strongly influence lender set interest rates, leading to a trickle down effect when the Fed lowers rates. Mortgage rates are particularly sensitive.