Advisers say they take action rather than “panic” after a hike – Lexington-Fayette, Kentucky

Lexington-Fayette, Kentucky 2022-06-17 08:51:27 –

Recent rate hikes in the Federal Reserve have already changed investor calculations.

Getting a mortgage, car loan, or credit card is more expensive today than Monday, after mortgage rates have shown a week-long surge in the most important of 35 years.

Freddie Mac said the average interest rate on fixed-rate mortgages for 30 years is 5.7%. According to Edmonds tracking, average monthly payments for new and used cars are currently at record highs.

As interest rates are rising, experts suggest that you should try to repay your debt as soon as possible, especially if you have a floating interest rate.

“”There are some things we need, such as food and gas, “says business journalist Mark Stewart. “Perhaps if there is one area where you can have some strength or influence, it’s in everything related to credit, such as credit card invoices. Your credit card rates will be higher. Let’s do that if you can take care of it now.

“this is In particular, we do not want to prolong it, as interest rates may rise further in the future. “

Almost all 401k have lost more than 10% of their value since the beginning of the year. Most analysts say they’ll find out what’s available, but they don’t make major decisions based on panic.

“”I wouldn’t recommend looking at the market for something like a 12 month period, right? “The Motley Fool’s adviser, Jason Moser, said. “We want investing people to be able to commit money to markets they know they can commit, if not at least three to five years. If you’re looking for a place that’s a short-term place to save money, savings accounts will definitely look more attractive these days as interest rates start to rise.

“But it’s worth noting that, despite these interest rates rising over time, inflation is still high at these high levels, and inflation has devalued its savings account. increase.”

The Federal Reserve said the goal of raising interest rates was to stop inflation, but that won’t happen soon. According to the most generous forecasts, inflation could return to the normal 2% range by 2024.

Source link

Back to top button