Overall economic health, inflation rates, and employment figures all influence interest rates. Strong economic growth often leads to higher rates.

The Federal Reserve sets the federal funds rate, which influences the interest rates banks charge each other and, ultimately, consumers.

Longer-term loans typically have higher interest rates than shorter-term loans due to the increased risk over time.

Borrowers with higher credit scores generally qualify for lower interest rates as they represent lower risk to lenders.

For secured loans, a lower loan-to-value ratio (more equity or down payment) often results in lower interest rates.

Different loan products carry different risk profiles for lenders, affecting the interest rates offered.