2018 Planned Rate Hikes and How Home Buying Will Be Affected

December 29th, 2017 | by: Steve Pollack | Posted in : New Homes, Real Estate News, Economy, Real Estate Tips

Interest rates can affect many aspects of your financial life and are driven by the monetary policy decisions of the Federal Reserve. Major banks use these monetary policy decisions when borrowing or lending funds. The Federal Reserve has recently agreed to raise its key interest rate of 1.25% to 1.5%. This marks the third increase in this rate this year. The raised rate will push up rates for credit cards, adjustable-rate mortgages and home equity lines of credit. Its effect on fixed-rate mortgages will not be as pronounced.