If you’ve been watching Wall Street like a hawk as of Wednesday evening, the buzz, is that for the first time in nearly a decade the federal reserve has raised its rates. While the raise wasn’t all that high, perhaps, it may still have a few effects on an every day American.
We’ve rounded up some of the effects based on what we’ve learned from investors; and banking officials in corporate America.
1.) Credit Cards
Credit cards and the “low rates” you often get drawn in on, may, see a small decrease in the “window period” in which those low rates remain attractive. Although the feds only raised their rates a measly .25%, it could still, mean such could happen to that lovely Capital One in your wallet.
As Wall Street would say “Don’t not pay attention to the stock market”.
2.) Mortgage Loans
Home owners; and those whom intend to buy: Read this one word for word. With the rate increase, comes concern that home mortgage payments could see a potential increase unless you’ve locked yourself into an attractive rate for the next 5 or so years. Mortgages tend to follow the 10-year treasury, but, with the rate — mortgage rates could see a small jump to about 4% in their rates itself.
Advisably, those with mortgage payments might want to consider refinancing into a locked rater before anything jumps anywhere — and results in a large home mortgage payment that nobody expected.
3.) Home Equity
This might only sound familiar to those that are actually buying their home or condo. With the rate hike, er, many experts advise Americans with such lines of credit to “refinance” and roll that debt over into their mortgage.
4.) Savings Accounts
Don’t expect any better rates (or anything of the like) on your savings accounts. Banks are still more than likely to be much more friendly to borrowers, rather than savers. If you’re looking for a better “rate” on that savings account, its advisable, to shop around and see what one can find.