LAS VEGAS (KTNV) — Some financial relief could soon be on the way. Economists say there’s a strong chance the Federal Reserve will cut interest rates on Wednesday afternoon — marking the first reduction of 2025.
For families across Las Vegas, that could mean immediate savings on mortgages, car loans, credit cards, and even home equity lines.
Shakiera Hawkins spoke to the experts to learn what a cut could mean for locals.
For Las Vegas resident Christine James, even a small cut would be a game-changer.
“Even by a slight deduction will help out,” James said.
She explained that high interest rates previously discouraged her from buying a home.
“That makes me a little bit happy because I previously was in the industry of trying to purchase a home, and what kind of steered me away was the interest rates and then how much the payments were going to be…," she said.
The Fed is expected to cut rates by a quarter-point at its Sept. 17 meeting, though nothing is official until the decision is announced.
Bankrate financial analyst Stephen Kates says even a small reduction could add up to meaningful savings.
At the start of 2025, a $400,000 mortgage with a 30-year fixed rate at 7% cost about $2,660 a month.
At today’s 6.29% rate, that payment drops to roughly $2,470 — a savings of nearly $190 a month, or more than $2,200 a year.
Those savings could grow further depending on the Fed’s move.
For James, that’s welcome news as she plans ahead.
“I’m looking in the next six months to purchase a home, so it makes me more hopeful,” she said.
It’s not just mortgages. A $30,000 car loan now costs about $11 less per month than it did earlier this year. And a $50,000 home equity line of credit is about $63 cheaper compared to late 2024.
Experts caution that while lower rates can help families save, they may also put upward pressure on prices across the economy. Still, for many borrowers, even a small break helps.
“I can actually put that towards another bill, so it does help out, or even put it into savings,” James added.
The Fed’s decision is expected Wednesday afternoon. If approved, the quarter-point cut could start lowering borrowing costs almost immediately, from mortgages to auto loans and even credit cards.