Where rates stand now
| Rate | Now | What it is |
|---|---|---|
| Federal funds target | 3.75% to 4.00% | Set by the Fed. Held steady on October 28, 2026. The next decision is December 9. |
| Prime rate | 7.00% | What most banks base variable rates on, usually the top of the Fed's range plus 3 points. |
| Average credit card rate | 22.36% | For accounts paying interest at commercial banks, August 2026 (Federal Reserve). |
| 30-year fixed mortgage | About 7.2% | Freddie Mac's weekly average for the week of November 5, 2026. |
Checked November 8, 2026. We update this table after each Fed decision.
What the Fed actually controls
The Fed sets a target for the rate banks charge each other for overnight loans. It doesn't set the rate on your card, car loan or mortgage. But almost every lender's costs start from that overnight rate, so when it moves, the rest of the system adjusts around it.
The Fed raises rates to cool inflation and lowers them to support jobs and growth. That is why inflation reports and jobs reports move markets: they change what people expect the Fed to do next.
Credit cards: the fastest link
Almost every credit card has a variable rate. Your rate is the prime rate plus a margin the issuer sets based on your credit. When the Fed moves, the prime rate usually moves by the same amount within days, and your card's rate follows within a billing cycle or two.
- A quarter-point Fed cut on a $3,000 balance saves you roughly $7.50 a year. That's real but small. Paying the balance down saves far more.
- When the change comes from the index, the issuer doesn't have to warn you in advance. A change to your margin needs advance notice, usually 45 days.
- If you pay your full statement balance every month, the rate doesn't affect you at all.
Mortgages: follow the bond market
Thirty-year fixed rates track the 10-year Treasury yield plus a spread for the lender's risk and costs. Investors price the 10-year on where they think inflation and the Fed are heading over years, not weeks. So mortgage rates often move the day a hot or cool inflation report comes out, well before the Fed meets, and they can even rise after a Fed cut.
- Fixed-rate mortgages lock your rate for the life of the loan. Later changes only matter if you refinance.
- Adjustable-rate mortgages reset on a schedule, based on a market index plus a margin.
- Home equity lines of credit usually follow the prime rate, so they behave more like a credit card.
Car loans
Car loans are usually fixed at signing, so a Fed move only matters for loans you haven't taken yet. Their rates sit between card rates and mortgage rates and follow general market rates, but your credit tier matters more than the Fed. Borrowers with lower scores often pay several times the rate of top-tier borrowers on the same car. Automaker promotions (0% or low-rate financing) come from the carmaker's lending arm and usually need very good credit.
Student loans
New federal student loan rates are fixed for the life of each loan. They are reset once a year, based on the 10-year Treasury auction in May. Private student loans can be fixed or variable, and the variable ones follow market rates.
Savings and CDs
High-yield savings accounts usually follow the Fed, often slower on the way up than on the way down. Certificates of deposit (CDs) lock a rate for a term. When cuts are expected, locking a CD keeps today's rate. When hikes are expected, shorter terms leave room to roll into a better rate.
What moves rates, and when
| Event | Why it matters | Next date |
|---|---|---|
| Consumer Price Index (inflation) | Higher inflation makes rate cuts less likely and can push mortgage rates up the same day. | Nov 10 and Dec 10, 2026 |
| Jobs report | Strong hiring can keep rates higher; weak hiring raises the odds of cuts. | Dec 4, 2026 |
| Fed meeting | The only event that changes the Fed's rate directly. Card rates follow within weeks. | Dec 8–9, 2026 (decision Dec 9) |
| GDP | A slowing economy raises the odds of cuts; a hot one lowers them. | Quarterly |
Events that aren't on a calendar move rates too: wars, oil price shocks, bank failures and government budget fights. In a scare, investors often buy Treasury bonds, which can push mortgage rates down even as everything else feels worse. When something big happens, we write a short note on what it means for borrowing and saving costs.
The part you control
You can't set the Fed's rate, but your credit decides the margin you pay on top of it. That gap is usually far bigger than anything the Fed does in a year.
- Pay every bill on time, and keep card balances low before the statement closes.
- Pay cards in full if you can; then the rate doesn't matter.
- Take a fixed rate when you want certainty, and a variable rate only when you can handle it rising.
- When rates fall a lot, check whether refinancing a mortgage or car loan saves more than it costs.
New to credit? Start with how to build credit from zero, then see what counts as a good score.
General information only, not financial or legal advice. Terms change often; confirm the current terms on the provider's own site before you apply. Some links may pay us a commission. Disclosure.