Fed rate cut: When to refinance a mortgage, car loan, student loan

The Federal Reserve announced a long-awaited rate cut on Wednesday.

The move could bring some consumer rates down , which may be good news for borrowers hoping to refinance into lower-cost loans.

"While the broader impact of a rate reduction on consumers' financial health remains to be fully seen, it could offer some relief from the persistent budgetary pressures driven by inflation," said Michele Raneri, vice president and head of U.S. research and consulting at TransUnion.

But that relief may take a while to arrive.

Borrowing costs tend to rise quickly when the Fed raises its benchmark interest rate — but fall slowly when it cuts. And certain debts, like mortgages, are influenced more by movements in long-term U.S. Treasury bonds than the Fed's benchmark interest rate.

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