Changes in the federal funds rate affect consumer borrowing and saving costs indirectly: shifts in the federal funds rate tend to filter through over time to credit cards, auto loans, mortgages, certificates of deposit (CDs), and high-yield savings accounts.
October 31, 2025
high
mechanism
The federal funds rate is a short-term bank-to-bank rate that influences broader interest-rate conditions faced by consumers and lenders.
Using home equity via a HELOC or a home equity loan generally offers lower interest rates than unsecured borrowing options such as credit cards or personal loans, making home equity borrowing often more affordable for larger sums or multi-year repayment.
January 01, 2025
high
comparative
Compares typical interest-rate levels and affordability between secured home-equity borrowing and unsecured consumer credit.
Reductions in a central bank's policy interest rate generally lead over time to lower borrowing costs for mortgages, auto loans, credit cards, and business loans, which tends to encourage consumer spending and business investment.
high
mechanism
Transmission mechanism of monetary easing to the broader economy