Interest Rates Rise for the 3rd Time

The Federal Reserve’s policy-making arm delivered the third hike in its short-term benchmark fed funds. More rate hikes are expected to come this year.

Medora Lee from USA Today explained, “Although the Fed doesn’t directly control consumer interest rates, its rate increases ripple through the economy and ultimately, hit businesses and consumers and slow demand and inflation.”

Economists anticipate the fed funds rate to reach 4.4% by the end of the year and reach 4.6% by next year.

These rising interest rates will affect recent and prospective homebuyers. Greg McBride, Bankrate chief financial analyst, said “The cumulative effect of 3 percentage points worth of interest rate hikes has cooled the housing market and caused the economy to start slowing, but hasn’t done much to lower inflation.”

Higher rates could also affect the stock market, credit cards, auto loans and bank savings interest rates. 

Check out this Yahoo Finance article for specifics.