In case you missed it, earlier this month the Federal Reserve decided to raise the interest rate by 0.25%.
What does that mean? Great question. Banks lend money to each other every day at the Federal Reserve's predetermined rate. Now, that rate has been bumped up a notch. It's a good sign, because it means they feel confident enough in the economy's strength that they don't have to lend money with rock-bottom interest rates.
Without getting too complex, raising the rate also makes sure that inflation stays in check and the cost of daily life doesn't get out of control.
But the important question for homeowners is how that increased percentage will affect everyday things like mortgages, auto loans and credit card rates. To find the answers,…