Should You Be Worried About the Recent Interest Rate Hike?

Interest rates are on the rise again, but is it really a cause for concern?

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Interest rates are on the rise again and it could have an impact on you if you're thinking of buying and/or selling a home.

Right on schedule, the Federal Reserve raised interest rates mid-June by 0.25% and they're expected to raise them again at least one more time before the end of the year. This means interest rates for homebuyers will go up, but things like car loans and home equity lines of credit will go up as well. Credit card rates will rise, also.

The good news is that the Fed is acting on schedule.

Homebuyers seeking financing will also qualify for a little bit less in terms of purchase price. It won't be a huge impact—depending on your mortgage amount, the monthly cost will increase by about $50. The good takeaway is that the Fed acted on schedule with this increase; when unexpected things start happening with interest rates is when things can get sticky.

As jobs and the market improves, the Fed will raise rates to combat inflation, so it's a good sign for the economy. If you have any questions about interest rates and how they affect you when buying or selling real estate here in the Chicago area, give us a call or send us an email soon. We'd be glad to help.