The U.S. Federal Reserve made its third consecutive interest rate hike on Wednesday raising it by 0.75% and bringing average interest rates between 3.0% and 3.25%. But what does that mean for the average consumer? Higher interest rates mean that it costs more to borrow money, which can reduce inflation for the price of goods and services. Higher interest will likely affect your credit card’s annual percentage rate (APR). New applications for car loans and mortgages for houses will come with higher interest rates. Finally, any new variable loans, lines of credit, or home equity loans will see higher interest rates.
