Financial expert on the impacts of rising interest rates

Financial expert on the impacts of rising interest rates, what new borrowers need to know



>> INFLATION HAS NOT HARMED EVERYDAY COMMODITIES. THE INCREASE IN INTEREST RATES AT THE FEDERAL LEVEL HAS IMPACTED AND HAS ALSO LEADED TO HIGHER INTEREST RATES FOR HOUSING LOANS AND CREDIT CARDS. A FURTHER 2% INCREASE IS EXPECTED. 6% INTEREST RATE ON HOUSING LOANS. BRANDI: THESE RISING RATES HAVE LEFT MANY PEOPLE LOOKING TO BUY A HOME WONDERING — HELLO, THANK YOU SO MUCH FOR JOINING US. >> THANK YOU FOR WELCOMING ME. LET’S TALK ABOUT BRANDI: LET’S TALK ABOUT WHAT BRANDI: IT INCLUDES — BRAN:DI LET’S TALK ABOUT WHAT DOES THESE RATES INCREASE MEAN? >> RATES ARE CURRENTLY 3.92%. RATES WILL LIKELY RISE TO 4% TO 6% BY THE END OF THIS YEAR. THE FEDERALS ARE GNGOI TO MAKE THE INCREASES ABOUT SEVEN TIMES THIS YEAR. FOR BUYERS, THIS MEANS THEY WOULD HAVE A HIGHER BORROWING COST FOR EXACTLY THE 300 OUT – A $300,000 MORTGAGE COULD PAY $1,400 A MONTH, THIS COULD GO UP IF RATES GO OVER 4%. >> HERE IN THE SACRAMENTO AREA, HOME PRICES LIKE $480.00. SO WHEN YOU TALK ABOUT RISE IN INTEREST RATES, IT’S SUPPOSED TO SLOW ECONOMY GROWTH WHICH IS TAKING INFLATION OUT OF CONTROL . IS THERE A CHANCE AS THE RATE GOES HEOM PRICES COULD BE SLOWER BY GOING DOWN A LITTLE >> >>? SOME SURVEYS INDICATE PEOPLE HAVE A 5% OR 6% TOLERANCE, SO PRICES COULD GO UP STILL. THE GOOD ING TOTH DO, ONE IS TO SAY LOCK INTAO FIX MEDORTGAGE NOW BEFORE PRICES GO UP. THERE WILL BE A STREAM OF PEOPLE WHO DON’T WANT TO BUY AT THIS CONCNER PRICES WILL GO UP AND INTEREST RATES WILL GO UP AND THEY WILL EXPECT HOUSE PRICES TO COME UP LATER. I WANT TO BLOCK NOW AND GET A MINDSET AS IT IS OK TO RENT. UP THIS AND SAY THIS IS OKO T RENT AND WELL BEFORE WE GO THROUGH THIS INTEREST RATE HIKE. >> WHAT ARE SOME LONG-TERM EFFECTS OF THIS GROWING INTEREST? >> THE LONG TERM EFFECT OF THIS WILL BE LIKELY, IT COULD DECREASE FURTHER. IF YOU’RE IN A FLOATING MORTGAGE RATE, A MEDALLION AND FOR THE NEXT FIVE YEARS. DO NOT WATCH FOR THREE OR TWO YEARS. YOU MAY HAVE A LOW INTEREST RATE. >> WHAT DO YOU SEE HAPPEN WITH THE PURCHASE OF A HOME IN THE NEXT TWO YEARS. DRIVGIN THESE PRICES SO HIGH? DO YOU SEE A LITTLE CHILL IN THE NEAR FUTURE AS RESAT INTEREST GOES UP. >> HOME BUYING COULD HAVE IT IN THE NEXT YEARS, ESPECIALLY WITH HIGH INTEREST RATES IN AN ECONOMY FOR PEOPLE WITHOUT WORK WITH INFLATION IN GENERAL AND THE COST OF LIVING IN GENERAL. HIGHER PRICE HOMES DEPENDING ON WHERE YOU LIVE WILL BE ON THE MARKET A LOT, THEY WILL NOT BE ABLE TO GET AWAY. BRAN:DI THANK YOU FOR JOINING US THIS MORNING. PEOPLE TRYING TO NAVIGATE

Financial expert on the impacts of rising interest rates, what new borrowers need to know

Inflation hasn’t just hurt your everyday possessions. Rising interest rates at the federal level also led to higher interest rates on home loans and credit cards. Another 2% increase is expected by the end of the year. their next steps should be. Financial expert Ann Kaplan sat down with KCRA 3 on Monday to help break it all down and offer advice on what new borrowers need to know. Hear what Kaplan had to say in the video above.

Inflation hasn’t just hurt your everyday possessions. Rising interest rates at the federal level also led to higher interest rates on home loans and credit cards.

Another 2% increase is expected by the end of the year.

These rising rates have many people looking to buy a home wondering what their next steps should be.

Financial expert Ann Kaplan sat down with KCRA 3 on Monday to help break it all down and offer advice on what new borrowers need to know.

Hear what Kaplan had to say in the video above.

Leslie M. Gill