Question What were interest rates in 2017 in USA?
In 2017, the Federal Reserve, which is the central banking system of the United States, made several changes to the federal funds rate. This rate is the interest rate at which banks lend reserve balances to other banks on an overnight basis, and it serves as a benchmark for many other interest rates.
Federal Funds Rate in 2017
According to the Federal Reserve, the federal funds rate began the year 2017 at a range of 0.50% to 0.75%. Throughout the year, the Federal Reserve raised the rate three times:
- In March, the rate was increased to a range of 0.75% to 1.00%.
- In June, the rate was raised again to a range of 1.00% to 1.25%.
- In December, the rate was increased to a range of 1.25% to 1.50%.
These increases were made in response to positive economic indicators, including steady growth in the Gross Domestic Product (GDP) and a declining unemployment rate.
Mortgage Interest Rates in 2017
Mortgage interest rates, which are influenced by the federal funds rate, also fluctuated throughout 2017. According to Freddie Mac, one of the major government-sponsored enterprises in the United States that deals with mortgages, the average rate for a 30-year fixed-rate mortgage in 2017 was approximately 4.03%.
Credit Card Interest Rates in 2017
Credit card interest rates are typically variable and are often tied to the prime rate, which is influenced by the federal funds rate. According to the Federal Reserve, the average credit card interest rate in 2017 was approximately 13.66% to 14.99%.
Remember: While these rates provide a snapshot of interest rates in 2017, it’s important to note that interest rates can vary widely depending on the type of loan or credit, the borrower’s credit score, and other factors.
