While the Federal Reserve did raise the federal funds rate by .25% today they also laid out a plan to gradually raise rates over the next year and beyond. It is good to take a look at how the current interest rate hike impacts consumers and how you can plan for future hikes.
How does this affect consumers?
- A $25,000 auto loan will now cost about $3 more per month
- A 30 year home loan will cost about $15 more per month per $100,000 borrowed
- Deposit accounts will gradually pay higher rates, but typically do not move as quickly as credit rates
- Historically stocks have done well leading up to an interest rate increase and in the year following
What can we do?
Plan, plan, plan!
Seldom do we get such a clear plan of when the Federal Reserve intends to raise rates.
Canter Companies provides a unique resource for our clients. Our team of Certified Financial Planners® and Real Estate professionals has the experience to help you plan for what is ahead. Whether saving for retirement, selling your home, buying a new home, investing in real estate or managing your investments you need a team who understands how the pieces fit together and who can help you lay the ground work to achieve your goals.