The average homeowner is sitting on a sizable amount of equity that could be worth borrowing now that the Federal Reserve is cutting interest rates again. Jason marz/Getty Images

The Federal funds rate is now at its lowest level since 2022.

That was the big financial news on Wednesday afternoon after the Federal Reserve issued another interest rate cut , this time in the amount of 25 basis points. The cut was the third such one in the last four months, dropping the federal funds rate to a range of 3.50% to 3.75%. Now at its lowest level since November 2022, the cut could open up new, more affordable borrowing opportunities for millions of Americans.

While this cut will impact different products in different ways, it may be more powerfully felt for home equity borrowers.

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