The Federal Reserve Set to Make Announcement on Interest Rates

Wall Street watching closely as a rise in rates could have a ripple effect on mortgages, other financial products.
0:53 | 09/17/15

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Transcript for The Federal Reserve Set to Make Announcement on Interest Rates
The federal reserve will announce this afternoon if it will raise interest rates for the first time since the financial crisis. Wall Street watching closely. It could have a ripple effect on mortgage, other loans and savings accounts. ABC's Rebecca Jarvis is here with what to watch for. Good morning, Rebecca. Reporter: Hi, George, good morning to you and this impacts everyone. Think of it like the training wheels coming off our economy. The federal reserve says that they will only take those training wheels off and start raising rates when our economy is strong enough and here's why you care. Because when the fed hikes interest rates, everything from the cost of your mortgage to car loans to credit cards goes up and little moves in interest rates can mean huge moves in the cost of doing thing, for example, with a mortgage, every time your rate goes up 1%, the cost of owning a home jumps 10%. Now, the flip side of rising interest rates is that savers get paid at least a little bit more than what they have been getting to keep their money in the bank, George.

This transcript has been automatically generated and may not be 100% accurate.

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