The Federal Reserve raised short-term interest rates on March 16th by a quarter of a percentage point. Additionally, they expressed plans to raise rates even further in the coming months. The aim is to battle high inflation, and it will have an impact on the average consumer. Higher interest rates can raise borrowing costs for consumers seeking to buy homes, cars, etc. Mortgage rates have already started rising in anticipation of the Fed's rate increases. Higher mortgage rates can increase home buying costs, making it more difficult for some aspiring buyers to afford a home.
You may have a loan that is a variable rate. This means the loan will likely increase as the Federal Reserve raises rates. It is a good time to sit down with your financial professional and view all your loan options, whether auto, boat, house or other. It may be prudent to lock in low-interest rates wherever you can.