Rising interest rates have been a hot topic the past year, as the Federal Open Market Committee (FOMC) raises interest rates for the Federal Reserve system, the central bank of the United States. Many business owners wonder what rising interest rates mean for their business in terms of loan and savings interest rates and wonder why loan interest rate increases aren’t mirroring savings rate increases. “Customers often ask why savings interest rates aren’t increasing the same way loan rates are, and how the federal fund rate (fed fund) increase affects home loan interest rates,” he said. “I’ve been in banking a long time, and it’s understandable for even the savviest to have questions like these because historically, interest rates have acted differently.”Why are savings rates not increasing as much as loan rates? Increasing savings account rates is not as necessary as in the past.”How does the federal fund rate impact home loan rates?

Source: The Herald August 22, 2022 19:21 UTC