5/5/2022- Federal Reserve has just raised its federal funds rate by a half point, a move that has not been seen in over a decade! What does that mean to consumers? The central bank sets the Federal Funds rate. This is the rate which banks both local, regional and national borrow and lend to each other. These rates are not the rates consumers like you and I pay, however each time a rate increases or a decrease happens it will affect all of our savings and borrowing interest rates. For example; Home buyers that were qualified for a $300,000 mortgage last week just saw a increase in what that monthly payment would look like. Today, do to the rate increase, a potential buyer could be looking at their buying power diminishing and lowering the amount that they are prequalified in addition to a higher monthly payment!