Written by Lauren Lyons Cole | March 15, 2017
The Federal Reserve‘s latest increase in short-term interest rates will have only a modest impact on consumer borrowing costs. But if the central bank continues to push up rates, which seems likely, then consumers should be adjusting their borrowing strategies now to minimize the impact later on.
As expected, the Fed raised its benchmark federal funds rate on Wednesday by a quarter point, to an upper limit of 1 percent. That’s still well below the historic average. But every increase in the rate—which is what banks and credit unions charge each other for loans—gets passed on to consumers in the form of higher rates on everything from credit card balances to car loans.
With that in mind, here’s how to prepare for the continued rise in consumer borrowing rates.
Mortgages. If you’re in the market for a new mortgage, or you have an adjustable-rate mortgage, rising interest rates could mean you’ll be paying more on your loan.
Corrin Otillio joined the Saurage Rotenberg Commercial Real Estate team in 2016. She obtained a bachelor’s degree from Louisiana State University (LSU) where she majored in Mass Communication, concentrated in Political Communication and minored in Business. While at LSU, Corrin was honored with the top 10% membership award from the sales and marketing fraternity, Pi Sigma Elipson (ΠΣΕ). She is currently pursuing her Certified Commercial Investment Member (CCIM) designation through the CCIM Institute and is a member of the Louisiana CCIM Chapter. To contact Corrin you can call (504) 250-4563 or email her at email@example.com.
Saurage Rotenberg Commercial Real Estate is a member of the Baton Rouge Area Chamber of Commerce (BRAC); the West Baton Rouge Chamber of Commerce; the Baton Rouge Better Business Bureau; the Louisiana Commercial Data Base (LACDB); and the International Council of Shopping Centers (ICSC). Several agents, on an individual basis, are members of the Society of Industrial and Office Realtors® (SIOR), the Certified Commercial Investment Member Institute (CCIM); the National Association of REALTORS® (NAR); and the Greater Baton Rouge Association of REALTORS® Commercial Investment Division (CID).