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What’s the Deal: Analysts predict interest rate hikes in 2022

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Analysts expect interest rates to be raised at least twice this year, although rates will remain relatively low.

Indianapolis – 2021 was a year of low interest rates, but what if you need to buy a home or a car this year?

The good news is that interest rates shouldn’t change often, but there are things to watch out for.

Greg McBride, chief financial analyst at BankRate, expects the Fed to impose two increases this year to help calm things down. But even with these increases, McBride expects mortgage rates to remain under 4%. For auto loans, the forecast is that the average five-year new car loan will be 4.4% and the average four-year used car loan will be just under half the 4.85%.

If you are someone with credit card debt, you will be affected by the increases because your card uses a variable rate, which means it changes.

“So when interest rates go up, your credit card price goes up very quickly, usually within one or two data cycles,” McBride said. “So now is the time to take a really tough stance on paying this debt, and speed it up because of

From the fact that this cost will only rise.”

If you’re a saver waiting for your money to finally earn more interest, don’t get your hopes up. Most banks stand on a pile of deposits, McBride said, which means there is no reason to try to attract more.

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