MEMPHIS, Tenn (localmemphis.com) – Wednesday, the federal reserve raised interest rates by a quarter of a percent, but what does that mean to you?
Money from your pocket.
Your credit card payments will increase by a quarter of a percent and if you’re getting a loan to buy a car or a house you’ll pay more every month.
Local real estate agent, Michelle O’guin says there is no reason to panic right now, but if you’re looking to buy do it now.
“It creates a sense of urgency to be honest,” says O’guin. “You know if the interest rates are about to rise you want to go ahead and get your interest rate locked in and obviously finding that home you’re wanting to buy sooner than later because it could ultimately save you $25 a month on average on your monthly mortgage.”
But that $25 a month equals $9 thousand over the life of the loan.
The Feds are expected to raise rates at least two more times this year.