What will next Fed rate cut mean for mortgages, credit cards and car loans?

Group 1: Federal Reserve Rate Cuts - The Federal Reserve is expected to implement a second interest rate cut of 2025 before Halloween, likely reducing rates by a quarter-point to a target range of 3.75% to 4% [1][2] - The last rate cut occurred on September 17, 2025, marking the third cut in 2024 [1] Group 2: Impact on Mortgages - Mortgage rates, which are not directly tied to Fed rate cuts, have decreased this year, with the average 30-year fixed mortgage rate dropping to 6.27% from a high of 7.04% earlier in 2025 [3][6] - Future mortgage rate movements will depend on the 10-year U.S. Treasury market, influenced by inflation concerns and budget deficits [4] - Currently, 70% of mortgage holders have rates below 5%, making refinancing less appealing for most homeowners [8][9] Group 3: Credit Card Rates - The average credit card rate is currently 20.03%, showing only a slight decrease from 20.12% prior to the last Fed rate cut [12][13] - A quarter-point cut in rates is unlikely to significantly impact credit card rates, which remain high [12][13] - Consumers with lower credit scores often face rates significantly higher than the national average, reflecting tightened lending standards [17][18] Group 4: Auto Loans - Interest rates for new and used car loans have slightly decreased since the Fed's last rate cut, with the average new car loan rate at 7.12% [19][22] - The average transaction price for new vehicles reached a record $50,080 in September, contributing to affordability challenges for consumers [20][21] - Expectations for further rate cuts could lead to lower auto loan rates in early 2026, contingent on improved economic conditions [24]