Palm Springs, CA
The Federal Reserve announced Wednesday, they’re raising interest rates a quarter of a percentage point, the highest level since 2008.
From the housing market to credit cards and loans, there’s some interesting changes happening.
"Does have an effect on pretty much everyone out there, whether you’re an investor, looking to get a loan on a house, you have credit cards," said Sean Heslin, a financial advisor with Edward Jones.
Interest rates rose from 1.50 to 1.75 percent. So how will this impact consumers?
"A higher interest rate on a mortgage means that the mortgage payment is going to be higher," said Heslin.
He and his team at Edward Jones are working hard to break down the numbers for clients who are working to manage their funds and now take on that additional interest rate expense.
"These are the rates that set the tone for interest rates across the board," said Heslin.
If you’re dealing with credit card debt, those rising interest rates could hurt you. The average credit card rate is already one percentage point higher than it was last year and could rise even more.
There’s good news though. Those with savings accounts could see some extra change with the higher rates but consumers should still keep an eye out. The Fed expects to hike rates at least three more times in 2018.
"There’s never a guarantee of that. For years, they’ve been meeting and nothing has happened. The fact that they are starting to raise interest rates. They feel the economy is strong and can handle," said Heslin.