interest increase

Interest Rate Increases are manageable. Media hype hides the true cost

April 17, 2022 4:37 pm Published by

We have heard for months and months interest rate increases are coming. Well, now they are here and the cost increases are not as bad as we have been told. The rate increases on every $100,000 is about $288 a year! That’s right! For every $1,000,000 is an extra $3,300 year! Skipping your morning coffee would make up most of these cost increases in a year! Interest rate increases are here to stay as long as inflation is above the accepted norm. That being said the federal government knows that rate increases can dampen down an economy quite quickly so the future increases will definitely be carefully considered. How does this affect the housing market? Right now, in different areas there is a pause for buyers. They are taking in this information and are wondering if house prices will head downward. This is highly doubtful because there are so many buyers looking for a new home. Buyers will be back into full force as the weather gets warmer!