WEST PALM BEACH, Fla. — The quarter percent rate cut announced by the Federal Reserve this week is unlikely to offer immediate relief to consumers, according to some experts.
"If you have a home equity line of credit, you didn't suddenly wake up to a quarter percent lower," Stephen Kates of Bankrate said. "The rates from the banks for borrowing and lending products go up in an elevator, and they come down on the stairs."
WATCH BELOW: Federal rate cut unlikely to provide immediate relief to consumers
Over time, the rate cuts will be favorable for things like auto loans and credit card rates, which are still running high.
"It's still important to know that even if we've gone down from 20 to 18 over the last two years, 18% is a punishing interest rate. It's not doing anything for your ability to pay it down," Kates says.
He also points out that mortgage rates are generally unaffected by the Fed's rate actions.
One area where consumers are likely to see an immediate effect, Kates said, is a lowering of interest rates on savings and CD accounts.
