interest rate – Cincy Link https://cincylink.com Explore Cincy Sun, 02 Jul 2023 06:06:25 +0000 en-US hourly 1 https://wordpress.org/?v=6.7.1 https://cincylink.com/pub/content/uploads/sites/27/2020/03/apple-touch-icon-precomposed-100x100.png interest rate – Cincy Link https://cincylink.com 32 32 Financial expert discusses impact of Federal Reserve raising interest rates https://cincylink.com/2023/07/02/financial-expert-discusses-impact-of-federal-reserve-raising-interest-rates/ https://cincylink.com/2023/07/02/financial-expert-discusses-impact-of-federal-reserve-raising-interest-rates/#respond Sun, 02 Jul 2023 06:06:25 +0000 https://cincylink.com/?p=173177

Financial expert discusses impact of Federal Reserve raising interest rates



US. REALLY, MICHELLE. WELL, YEAH, WITH THIS HIGHER INTEREST RATE, JUST LOOK FOR THINGS TO GET MORE EXPENSIVE. LIKE IF YOU NEED TO BUY A NEW CAR. FINANCIAL EXPERTS SAY WITH A LOAN RATES GOING UP, IT’S ALL IN AN EFFORT TO BRING INFLATION DOWN. NEW CARS ARE BACK ON THE LOT OF SACRAMENTO DEALERSHIPS AND THAT MEANS SO ARE BUYERS. WE NEED A BIGGER CAR. OUR FAMILY’S GROWING AND WE NEED TO MOVE UP FROM A CAR TO SUV. BUT TWO YEAR OLD ELIJAH, FIVE MONTH OLD SANDRA AND ANOTHER BABY ON THE WAY. THE TIMING FOR A NEW SUV IS NOT THE BEST FOR A GET A FAMILY. THERE’S NOT MUCH WE CAN DO ABOUT INTEREST RATES. I MEAN, IT’S BASICALLY WE WERE IN NEED OF A CAR. SO IT’S LIKE WE HAVE TO BUY IT REGARDLESS OF THE POINT. 75 JUMP, IT’S JUST GOING TO BE HARDER. IT’S JUST GOING TO BE MORE EXPENSIVE. FINANCIAL EXPERT KELLY BROTHERS SAYS THE FEDERAL RESERVE’S MOVE TO RAISE THE INTEREST RATE ANOTHER .75 IS HOW THE GOVERNMENT KEEPS INFLATION IN CHECK. THEY FEEL IT’S VERY IMPORTANT TO PULL INFLATION BACK IN, TO REIN IT IN, TO GET THAT UNDER CONTROL. AND THE ONLY REAL MEANS THEY HAVE OF DOING THAT IS RAISING INTEREST RATES AND SLOWING DOWN THE ECONOMY. THE HIGHER INTEREST RATE MEANS PAYING MORE FOR A NEW CAR. AT THE BEGINNING OF THE YEAR. THE AVERAGE INTEREST RATE ON A SIX MONTH NEW CAR LOAN. WAS 3.85%. WITH TODAY’S HIKE, THAT RATE COULD BE AS MUCH AS 5.75. REGULATORS KNOW THEY’LL HAVE TO STICK TO THEIR FAMILY BUDGET. WE HAVE TO BE A LITTLE BIT MORE SAVVY ON OUR SPENDING. THIS DEFINITELY IS GOING TO PLAY A BIG ROLE IN OUR SPENDING, MAKING THIS AND MAKING THIS TRANSITION FROM A CAR TO SUV, TAKING ON A NEW LOAN WITH A HIGHER INTEREST RATE. WELL, FAMILIES WILL FEEL THE PINCH. BROTHERS SAYS THIS WILL EVENTUALLY HELP THE ECONOMY AFTER THE PANDEMIC. WE’RE NOT PUSHING RATES UP ABNORMALLY. WE’RE RETURNING TO A MORE NORMAL RATE POSITION. WHAT WAS ABNORMAL WAS WHAT HAPPENED AFTER COVID, WHERE WE WENT DOWN TO ZERO. AND BORROWING BECAME CHEAPER. COST NOTHING. YEAH. AND BROTHER SAYS IF YOU DO HAVE CREDIT CARD DEBT, JUST TRY TO MAKE SOME BIGGER PAYMENTS INSTEAD OF JUST DOING THE MINIMUM PAYMENT. HE SAYS THOSE ANNUAL PERCENTAGE RATES ARE SURE TO GO UP. SOME MAY BE UP TO 19% ALREADY. REPORTING LIVE IN SACRAMENTO, MICHELLE, BONJOUR. KCRA 3 NEWS. YEAH. IMPORTANT NOW MORE THAN EVER TO GET THOSE CREDIT CARD DOWN THE PAYMENTS YOU NEED. WELL, FINANCIAL EXPERTS SAY THAT THERE IS AN UPSIDE TO THE HIKE IN INTEREST RATES HERE. SAVERS WHO KEEP THEIR MONEY IN THE BANK WILL SEE A BIT OF A

Financial expert discusses impact of Federal Reserve raising interest rates


The Federal Reserve is intensifying its battle to bring down 40-year high inflation by raising interest rates three-quarters of a point for a third straight time on Wednesday. This comes as the housing market is cools, with home sales dropping for seven straight months.Variable interest rate products like credit cards, auto loans and mortgages are impacted by the Federal Reserve's decision to raise interest rates.Financial expert Kelly Brothers breaks down the latest developments and what it means for you.Watch the video above for the full story.

The Federal Reserve is intensifying its battle to bring down 40-year high inflation by raising interest rates three-quarters of a point for a third straight time on Wednesday. This comes as the housing market is cools, with home sales dropping for seven straight months.

Variable interest rate products like credit cards, auto loans and mortgages are impacted by the Federal Reserve's decision to raise interest rates.

Financial expert Kelly Brothers breaks down the latest developments and what it means for you.

Watch the video above for the full story.


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]]> https://cincylink.com/2023/07/02/financial-expert-discusses-impact-of-federal-reserve-raising-interest-rates/feed/ 0 Take advantage of low interest rates now https://cincylink.com/2022/01/05/take-advantage-of-low-interest-rates-now/ https://cincylink.com/2022/01/05/take-advantage-of-low-interest-rates-now/#respond Wed, 05 Jan 2022 06:07:07 +0000 https://cincylink.com/?p=134462

The Federal Reserve is signaling that it will increase interest rates this year to deal with rising inflation.

Financial experts say those rate hikes will be small —only a quarter to maybe half a percentage point at a time — since current interest rates are near zero. However, the impact will be felt right away.

"Where you're going to see the impact quickest is going to be on things like credit card debt and home equity lines of credit. That variable-rate debt tends to reprice very quickly," said Greg McBride, the chief financial analyst at Bankrate. "You'll often see that higher rate within one to two statement cycles. Things like mortgage rates tend to move in advance because mortgage rates are based more on the outlook for the economy and inflation."

McBride says Americans should consider making a few moves before interest rates climb.

First off, take care of credit card debt.

"This is the time to act aggressively by paying down and paying off that debt before it becomes costlier as rates rise," McBride said. "If you have good credit, take advantage of those 0% and other low-rate balance transfer offers. With the ability to transfer the balance to one of those low-rate cards, you do two things. One, you give yourself this runway to get that debt paid off once and for all. But in the meantime, you're also insulating yourself from higher interest rates."

McBride also says those considering refinancing mortgages should act quickly before rates increase. Refinancing now can cut monthly payments by $100 to $200.

However, McBride says there's no need to rush a car purchase.

"When it comes to something like buying a car, rising interest rates really are the least of your concerns because it has such a minimal effect on the monthly payments," he said. "A quarter-point increase in rate, it's really only a difference of about $3 a month on a $25,000 loan, so nobody's going to have to downsize from the SUV to the compact because of rising interest rates."

McBride expects inflation to stay above what we've been used to for several years. For the better part of a decade before the pandemic, inflation remained below 2%, but he expects rates to stay above 2.5-3% moving forward.




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