What lower interest rates mean for you and your wallet

The Federal Reserve lowered interest rates for the first time since last December. Chief economics correspondent Rebecca Jarvis is on Wall Street. Good morning, Rebecca. Good morning to you, Michael. And stocks are pointing higher this morning. This rate cut was widely expected here on Wall Street with the Fed at a critical moment, having to balance two factors. Both a slowing jobs market and lower inflation. But with prices still climbing in areas like the grocery store and rents, the Fed has signaled there will be two more rate cuts coming this year. And that should translate to lower credit card APRs, lower, cheaper car loans and mortgage rates. The average 30-year fixed rate mortgage this morning is 6.22%. For anyone who bought with a mortgage rate above 7% who is thinking about refinancing right now, a basic rule of thumb is that rates need to drop at least half a percent to 1% lower than your existing rate for a refi to save you money because there are a lot of fees involved. You have to always factor that in to your calculations. In many places in the country this morning, renting is still cheaper than buying and yet renting feels quite expensive as well. Two things that experts recommend doing on that front. One, if you're going to move, think about doing it in the winter when rents tend to go lower. And two, take advantage of things like Built. B I Lt, their rewards program. If you pay your rent through Built, will give you points to use towards things like your your food, your hotels, your travel, and other things like that. Robin, that is something to really keep in mind. and Rebecca, thank you.