Savers will gain and borrowers will lose as interest rates rise this year, experts say.
That being said, if concerned consumers are thinking about prioritizing dealing with debts that may soon become much more expensive, both Smith and Wolf immediately note that credit card rates are already astronomically high.Article content
The next debt that jumps out to economists is mortgages. Rising interest rates translates into mortgages costing homeowners more. For those with variable-rate home loans, the effect will be almost immediate.If he had a variable-rate loan, Wolf says he’d convert it to a fixed-rate loan as fast as he could.Both Wolf and Smith point out that it’s important to consider the bank’s intentions here.
Smith says those who have savings should soon see the results of the bank’s interest rate hike — if they haven’t already. Wolf adds that while savers do benefit from that response, with inflation as high as it is, it’s likely to offset major gains.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
GDP grew faster than expected in fourth quarter, ensuring Bank of Canada interest rate hikeKevin Carmichael: Economy grew at an annual rate of 6.7 per cent in the fourth quarter, much faster than the Bank of Canada was expecting
Read more »
Russian bank VTB prepares to pull out of Europe, FT reportsRussian bank VTB is preparing to wind down its European operations after being hit hard by Western sanctions, the Financial Times reported on Sunday.
Read more »
Germantown's Attic Brewing Company Will Donate 10% Of Sales This Weekend To National Bank Of UkrainePHILADELPHIA (CBS) \u2014 A local brewing company says it is seeing the war through the eyes of one of its employees who was born in Ukraine. On Saturday night, the business and its patrons are doing what they can to help.While the Russian invasion relentlessly wreaks havoc in Ukraine, Philadelphia is continuing to show why […]
Read more »
Ukraine may receive $700M in planned loans from World BankThe World Bank Group is putting together financial help for Ukraine.
Read more »
Merger between Valley National, Israel's Bank Leumi set for April 1Bank Leumi said on Sunday it expected the merger of its U.S. unit and Valley National Bancorp to be completed on April 1, adding that all conditions and approvals in the deal have been cleared.
Read more »
Philippines central bank to launch CBDC research effortThe Bangko Sentral ng Pilipinas, the central bank of the Philippines, intends to move forward with a research project focused on central bank digital currencies.
Read more »