What the Fed's Moves Will Mean to Your Loan

The good news: The economic recovery is strong enough that the Federal Reserve will likely raise rates.

The bad news: A variety of consumer loans, from auto loans to 30-year fixed-rate mortgages, will become more expensive.

This week, for the first time in 15 months, the Federal Open Market Committee shifted its assessment of the economy, saying the risk of economic weakness was balanced against the risk of inflation. After 11 rate cuts, this prompts the question of when rates will start to rise -- many think it could come on May 7, at the next Fed meeting. Indeed, the federal funds futures market put the odds of a quarter-point hike in May at 78%. ...