The impending rate hike by the Federal Reserve is expected to hit Americans on many levels, with the ultimate goal to cool the pressure on prices with consumers spending less. But what, if any, effect will a rate hike have on real estate?
CNBC experts looked at a number of industries and found that real estate—specifically mortgages—will almost certainly feel the stretch.
Given that mortgage and refinance rates are influenced by the economy (and inflation), expect long-term fixed rates to continue their rise. While adjustable-rate mortgages will also be swayed, CNBC experts recommend those with a home equity line of credit, or HELOC, may want to lock those rates in sooner rather than later.
Also set to rise with a rate hike: credit card rates. Currently around 16.34 percent, down from a high of 17.85%, according to Bankrate, CNBC notes that consumers should expect the annual percentage rate to rise when the Fed makes a move.
Those looking at auto and student loans needn’t worry as those fixed rates won’t be immediately impacted by a rate hike.