ARKANSAS (KNWA) — For the first time since 2008, the federal reserve has cut its key interest rate.
Federal Chairman Jerome Powell announced a one-quarter of a percent cut Wednesday, July 31.
Director of Education Mark Foster with Credit Counseling of Arkansas said, if you’re thinking about making a big purchase, like a new home, this could save thousands over the course of a loan.
Foster added, “If people are lulled into a false sense of security and bite off more debt than they really should to take advantage of low interest rates, then that’s something to always be cautious of.”
He also said when taking out a loan, don’t consider how much money you can borrow. Instead, think about how much you can afford.
