AMARILLO, Texas (KAMR/KCIT)- On Sept. 21 the Board of Governors of the Federal Reserve System voted to raise interest rates paid on reserve balances by 0.75%. Rising interest rates are happening in an effort to lower inflation by backing its two percent objective.
Although interest rates are rising borrowers still have options in terms of buying houses, cars, large ticket items, and receiving loans.
“So the better your credit, the lower your interest rate will typically be if you’re a borrower, said Matt Ramsey, Senior investment officer.” “But it’s also a good opportunity for folks to look at savings. Interest rates have been low for a very long time, because the Fed has had them at that stage, and now they’re higher. And so this is a good opportunity for folks to get some return on their savings.
For people looking to buy homes property values are still good and borrowers are able to take advantage of home equity loans, according to Jessica Beghtel, Vice President and Senior Loan Officer at Amarillo National Bank.
Increased interest rates haven’t been all bad. Savers who have a certificate of deposit have the chance to see higher returns on their savings and investments.
“On a positive note CDs and savings Interest rates are up, said Nicole Hirschler.” “So we’ve seen them range from last year being less than a percent up to 2%, even up to 3%.
CD accounts have fixed interest rates, with a fixed term limit.
Interest rates that are below nine percent are still considered to be good. However, in the past few years, borrowers have become accustomed to interest rates that are below four percent.
As the Federal Reserve attempts to lower inflation interest rates are projected to continue rising until inflation is back at the two percent objective.