The Price of Borrowing

Interest rates are the cost of using someone else's money. When you take a mortgage, the rate decides how much extra you pay the bank for the privilege of borrowing. That single number quietly shapes nearly every financial decision you make.

Rates also represent the reward for waiting. When you deposit money in a savings account, the bank pays you interest for letting them use your funds. Higher rates reward patience; lower rates reward risk-taking and spending. This balance shapes the entire economy.