They did it again. The Federal Reserve cut interest rates in September and November 2024, dropping rates from 5.33% to 4.58%, with an indication that more could follow.

Keep in mind that Federal interest rate cuts tend to happen slowly and steadily over time. The initial September cut occurred after the Fed raised rates 11 times between 2022 and 2023 to combat inflation pressures. 

Although nobody can predict exactly when interest rates will change or what will happen with the economy, changing interest rates can affect your personal finances. However, be mindful to develop a financial strategy that supports you in pursuing your goals within your own timeframe, not just on market headline news.

What lower interest rates mean

The Fed may lower interest rates to stimulate economic activity during periods of slow growth or increase rates to combat inflationary pressures. The adjustment makes borrowing money more affordable, which is particularly favorable for homebuyers and businesses that may have been holding out for better (lower) rates. At the same time, interest rates earned on money, like savings, also decrease.

The highlight:

  • Lower interest rates can make borrowing money more affordable. Refinancing an existing loan may also become more attractive. Think lower rates on home equity lines of credit, or auto loans.

These impacts can be seen across financial institutions, including Camden National Bank. Rest assured that we remain committed to providing our customers with competitive rates, smart savings tools, and features to support their financial goals.

Tools to help you

We have many calculators to help you evaluate your earnings after rates adjust and determine the right move for your financial goals.

Need Assistance?  There are experts to help you fill in the missing pieces of your financial strategy.  Let’s meet to start the conversation.