What the Rate Hike Means For You
We are coming in hot today with a reaction to the FED’s unprecedented 75 basis point rate hike and what that means for you! First up is housing and as you can imagine, the surge in interest rates to nearly 6% will reduce the number of buyers in the market and free up more inventory. More inventory is less competition and less competition means prices stabilizing. If you’ve been looking to buy a home, this may be your opportunity. You may pay a higher rate now but chances are you can refi down in a year or two. The second piece is debt, specifically bad debt. Rates on credit cards and revolving lines are jacking up just as fast and these interest payments are on the brink of 20% in many cases. With consumer debt rising to keep up with inflation, now is the time to pay off high interest credit cards and personal loans. Home equity remains at all time highs, take the opportunity to pay down bad debts with a cash out refinance. Again, you may pay a higher rate now but chances are you can refi down in a year or two.