Greg McBride Declares Falling Rates Don't Mean Low Rates

On November 7, 2024, the Federal Reserve cut its key overnight lending rate, following a previous cut in mid-September. Despite expectations for further cuts, interest rates remain high, with credit card rates averaging 20.78%, significantly higher than earlier in 2022. The 30-year mortgage rate reached 6.79%, still below the previous year’s rate of 7.50%. Financial analysts advise consumers to pay down debt and seek lower-interest options, especially given that cash yields are declining. Investors are encouraged to maintain a diversified portfolio due to anticipated volatility in bonds and the performance of equities influenced by earnings and interest rates.