When the Fed raises or lowers short-term interest rates, the impact doesn't ripple evenly through the economy. Different interest rate-related products will behave in different ways leading up to, and in response to, a Fed rate increase or decrease. Here's a look at how quickly your budget will take a hit, or benefit because of the Fed interest-rate moves.

What do Fed rate moves mean?

Mortgages Home Equity Auto loans CDs MMAs Credit Cards Home equity loans • Rates for home equity loans are fixed, so rate changes won't affect existing borrowers. • Small, short-term home equity loans are often tied to the prime rate, which moves in close concert with Fed interest rate hikes. If the Fed is cutting rates -- and there's no immediate need for a small loan -- consider holding off to see if the Fed drops rates even further. • Larger home equity loans, paid back over 10 or 15 years, will track more closely to long-term interest rates, much like fixed-rate mortgages.   Conclusion: Fed sensitivity depends. If you have a loan or are considering a long-term loan, no real effect. If you are considering a short-term loan, which are tied to prime, pay attention. Home equity lines of credit • HELOC rates closely mimic moves in the prime rate. You'll likely notice changes in one or two statement cycles.   Conclusion: Lines of credit are sensitive to Fed rate changes.   See home equity rates in your area.