For the love of mortgage rate
25 percent, which it reached in late 2006 and early 2007. The latest rate cut was not a surprise to financial analysts, but they were not certain how much farther the Fed would be willing to go in trimming interest rates that were already close to the bottom. The rate cut should be a boon to borrowers. 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 especially prone to react.