How will higher interest rates affect you?
FORT MYERS, Fla.- Everything from your mortgage, to your credit card bill could soon be impacted after the Federal Reserve raised its key interest rate on Wednesday for the first time in nearly a decade.
The Fed raised the interest rate by .25 percent, and rates are expected to rise gradually at a slow pace, but in reality, experts say nothing will change majorly overnight.
“I think in general it is very positive,” said financial adviser Patrick King.
King says the rate hike could be positive for the savers and investors who earned almost zero interest for the past seven years.
“There is a chance that banks may raise interest rates for money markets, checking accounts and CDs,” said King.
Even if banks were to offer higher interest rates, it won’t happen immediately. So how will the latest rate hike affect those of us who need to borrow money short-term for things like buying a car or home?
“It is scary at first, but in the realm of things, we are going to do anything to get anybody’s business,” said Michael Spinazze with Sutherlin Nissan.
Spinazze says even though the interest rates are rising, most car dealership deals go directly through the manufacturer who could buy out the fed interest rate and still offer customers zero percent.
“In reality, we are going to make the same deal tomorrow as we do two weeks down the road or two months down the road,” he said.