(WBAP/KLIF) — The fed’s hike in the interest rate isn’t entirely bad for consumers. It may be unwelcomed news for those searching to buy a new home or car, however for those wishing to save and invest, opportunity is knocking.
For those saving and investing money, the federal reserve’s rate increase to 5.5% provides money-making opportunities in CD’s and money market accounts. According to Bankrate’s Greg McBride, interest rates are available above 5% if you’re looking in the right places. He says putting money in a safe haven investment such as a money market or cd is no longer a drag on your portfolio.
However, McBride says the hike raised the cost of borrowing money for those looking to finance a new purchase, such as a new automobile or house. Home prices across North Texas are beginning to come down as the cost to borrow money has gone up due to another quarter-percent hike in the base interest rate by the Federal Reserve. The housing market is still favorable due to a low inventory of homes on the market, however that is beginning to change. McBride says mortgage rates are currently hovering around 7% and won’t come down until inflation is under control.
Inflation is currently at 4.5%, far above the Federal Reserve’s target range of 2%. Experts predict another rise in interest rates later this year.
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