Economic trends have a major impact on the change in interest rates. HELLO Covid! In an emergency response to the 2020 global pandemic, the Federal Reserve cut rates to historic lows to encourage spending and keep our economy afloat. Think lower mortgage rates, lower car loans, lower credit card APR rate, zero interest offers etc. – this translates to more money in consumers’ pockets to spend! All of this spending, translated to higher demand. Higher demand ultimately kicks prices up – that’s economics, baby!