Metro Atlanta residents frustrated with interest rate hikes
The three-quarter point hike marks the fourth consecutive hike of its kind and may not be the last one we see this year.
ATLANTA, Ga. (Atlanta News First) - The Federal Reserve’s interest rate indicates how much banks should pay to borrow money from the Fed, which in turn affects how much it costs consumers and businesses to borrow for mortgages, credit-card debt, and car loans.
For friends Tyreek Bynum and Chris Sharpe, these high-interest rates are keeping them from buying a home.
“We’re renters right now, but I’m trying to buy myself a house, you know what I’m saying,” said Sharpe.
“Right now, I’m focused on saving as much as I can. Buying a house, it’s not even there,” said Bynum.
The three-quarter point hike marks the fourth consecutive hike of its kind and may not be the last one we see this year.
Alex Reffett with East Paces Group says The Fed is making moves to keep people from spending money, which should help curb the inflation that has impacted so many people.,
“This is new territory and a new world we’re living in, if people don’t adjust and take advantage of this new market, they’re doing themselves a disservice,” said Reffett.
He said the changing market highlights the reason why you need to save and save consistently throughout your life.
“If you’re in your twenties and thirties, you are getting your life set up, you need to have the perspective that money and interest rates have been cheap your whole life, interest rates have been cheap, buying houses has been cheap so people need to adjust to this new environment, and realize houses and prices have been cheap for a very long time,” said Reffett.
For people older and more settled, Reffett recommends diversifying your portfolio to add more incoming cash flow. The rate hikes to date have brought the average mortgage rate above 7%, its highest level in 20 years.
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