The federal reserve has raised interest rates ¾
LAWTON, Okla. (KSWO) - The federal reserve has raised interest rates ¾. They say this is in an effort to slow down inflation and help the economy.
To the average person, this means the cost of credit cards, car loans, and mortgages will increase. The Vice president of Liberty national bank explained it to us.
“If they have a variable credit card rate their likely to see higher interest payments. And for people who are wanting to buy or build or maybe even a starter home. You know at $200,000 for home rates were two and three-quarters of a percent they’re looking for about an $800 a month payment if the rates for mortgages rise to about 6% which is anticipated their looking at more $1,200,” said Monte Brown.
The Federal Reserve said its goal is to help the economy, by slowing down borrowing.
“People who they’ve been borrowing money at these historic low rates to work on other projects could slow them down. And when they slow down in some of their projects it’s going to bring down the demand for some of the supplies they need for these projects,” said Brown.
And he said there are other positives.
“You know is raising interest rates for borrowers one thing you have to also look at is people who have a lot of savings, people who are focused on savings they could start seeing a better return on their savings,” said Brown.
Altus City Manager Gary Jones said they saw this interest rate spike coming and took advantage of the lower interest rates earlier last year.
“We back in April of 2021 passed a capital improvement we call it maps and when we pass that the interest rates were so low in fact they were historically low so we made a decision to borrow as much money as possible so we could have that money to fast track the construction of those projects and maybe avoid an increase in interest rates and what appeared to be a good decision at the time appears to be a really good decision now because the increases have come,” said Jones.
Also, your 401K is market-based and can be affected by the increased variable interest rates.
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