In the latest news, it was mentioned that Federal Reserve has decided to keep the interest rates for home and auto loans at a low point. Even though the economy is improving they say that they will the interest rates low for some more time.

According to Federal Reserve, the job market is reviving and economic activity is showing continued improvement. The interest rate is still low because there is still a significant rate of unemployment which needs to be reduced in order to increase the spending. Currently, the interest rate for home and auto loans charged by commercial banks is 3.25% which is the lowest point as compared to last many decades. The banks get loans at even lower rate which makes it easier for them to provide loans to their customers. With a low interest rate on loans people can also earn interest on the savings they make by passing lesser for the loans.

A low interest rate is beneficial for the economy in the long run. A person planning to take a car or home can right away go for it as the interest rate is quite attractive at the moment. This is possible because the Federal Bank has kept the federal funds rate near 0 percent which will save a lot of cost of the commercial banks and also will increase the cash flow in the market.

A car, home are essential necessities of life without which life is not comfortable. Thus, this can be the right time to avail for a loan with a lower interest.

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