CHANGE IS DIRECTLY OVERHEAD.
I WILL LOOK AT THAT IN DETAIL
WITH THE COMPLETE FORECAST
TONIGHT AT 11.
THANKS, DAVE.
NOW IT IS TIME TO GET YOUR
FINANCIAL HOUSE IN ORDER.
THE RECENT INTEREST RATE HIKES
WILL HAVE FAR-REACHING
CONSEQUENCES.
THE QUARTER PERCENT INCREASE
WITH THE SECOND THIS YEAR AND
LIKELY NOT THE LAST.
THANKS TO A BOOMING ECONOMY,
TWO MORE INCREASES ARE EXPECTED
BEFORE THE END OF THE YEAR.
LET'S BRING IN THE FINANCE
EXPERT.
EXPLAINED THE DIFFERENT WAYS
CONSUMERS EXPECT THE IMPACT.
FIRST OF ALL, RETIREES WILL
BE HAPPY ABOUT THIS, THEY WILL
SEE THE RATES ON THEIR CDS,
MONEY MARKETS, REGULAR SAVINGS
ACCOUNTS, THEY ARE EXPECTED AND
PROJECTED TO BENEFIT FROM THAT.
WHAT HAPPENS WHEN YOU'RE
CHARGING MORE FOR INTEREST RATES
FOR MORTGAGES, CREDIT CARDS,
YOU HAVE MORE YOU CAN SHARE
WITH THE CONSUMER THAT'S MAKING
DEPOSITS AT THE BANK.
THIS WILL BE COSTING PEOPLE
MORE MONEY TO BORROW MONEY.
LET'S GO THE DIFFERENT AREAS,
CREDIT CARDS, WHAT WILL PEOPLE
SEE IF THEY CARRY A BALANCE ON
THE CAR?
WHILE THE RETIREES ARE
HAPPY, THOSE BORROWING FOR CAR
LOANS, THEY WILL NOT BE AS HAPPY
BECAUSE THEY WILL SEE THE
INTEREST RATES GO UP.
THEY ARE PREDICTING TO SEE THE
CHANGES, $30 MORE ON A MONTHLY
BASIS. IF YOU DO $30 MORE,
THAT'S ABOUT $9000 FOR THE
YEAR.
THAT ADDS UP.
THOSE LOOKING TO PURCHASE
HOMES, IF YOU THINK ABOUT A
HOUSE AND THE STANDARD RATE OF
200,000, YOU WILL EXPERIENCE AN
ADDITIONAL $40 MONTHLY.
THAT'S $9000 WITHIN THE YEAR.
IT MAY NOT FEEL SO TIRED ON A
MONTHLY BASIS, IF YOU LOOK AT
THE MORE YOU PAY FOR THE LOAN,
OVER THE TIME OF THE LOAN, YOU
FEEL THE IMPACT OF THE
INCREASE.
THE SAME WAY PEOPLE ADVISE
YOU TO SAVE A LITTLE EVERY
MONTH, IT ADDS UP IN THE LONG
RUN.
THAT'S EXACTLY HOW THE RATE
CHANGE WILL FEEL.
THOSE ON THE FENCE THINKING
ABOUT IF THEY WANT TO PURCHASE
A HOME, THEY NEED TO HOP TO IT
BECAUSE THE RATES ARE GOING TO
CONTINUE TO GO UP.
YOU WANT TO LOCK IN YOUR RATE
IF YOU ARE IN THE NEGOTIATION
PROCESS BECAUSE THEY HAVE THE
TENDENCY TO GO UP UNDER THIS
MARKET.
INTEREST RATES WERE CAPPED
AND KEPT LOW FOR SO LONG
BECAUSE THE ECONOMY WAS NOT
DOING WELL.
IF WE LOOK AT A POSITIVE, THE
FACT THE FED IS RAISING
INTEREST RATES IS A SIGN THINGS
ARE GOING WELL WITH THE
ECONOMY.
IT'S A FINE IT'S GOING WELL
FOR THE ECONOMY, WHEN
PURCHASING A HOUSE OR CAR OR
LOOKING AT YOUR CREDIT CARD
STATEMENT ON A MONTHLY BASIS,
YOU FEEL THE PINCH.
IF YOU CHECK EXPERIAN,
AMERICANS ARE AT THE ALL-TIME
HIGH WHEN IT COMES TO CREDIT
CARD DEBT.
WHEN YOU TALK ABOUT PUSHING
MORE, THOSE PAYING IT OUT FEEL
THE PINCH.
INDIVIDUALS FEEL THAT FOR
SURE.
WHAT YOU ADVISE TO DO RIGHT NOW
TO TAKE ADVANTAGE OF THE GOOD
ASPECTS OF THIS CHANGE WHILE
MINIMIZING THE NEGATIVE?
THE BIGGEST THING IS, IF YOU
PURCHASE AN AUTO LOAN, THEY ARE
PREDICTING THERE WILL BE THREE
MORE RATE INCREASES, IF YOU
THINK ABOUT MAKING A MAJOR
PURCHASE, YOU DON'T WANT TO
KEEP SITTING ON THE FENCE.
SITTING ON THE FENCE MAINS YOUR
RATE WILL ESCALATE.
WHEN THE RATE GOES UP, IT WILL
IMPACT YOUR PRINCIPAL.
THAT'S THE FIRST THING, IF
YOU'RE IN THE HOUSING MARKET,
JUMP TO IT, DON'T GO BACK AND
FORTH ON NEGOTIATION BECAUSE IT
WILL COST YOU ON A MONTHLY
BASIS.
YOUR CREDIT CARDS AND THINGS
LIKE FIXED RATES, THIS IS NOT
THE BEST TIME TO BORROW ON
SOMETHING ADJUSTABLE.
IT'S NOT BECAUSE THE RATES CAN
FLUCTUATE.
IF YOU FEEL TIGHT IN YOUR
BUDGET, THE SOONER THE BETTER,
TRY TO MINIMIZE WHAT YOU GET ON
RATES THAT ARE MOVING.
LOCKET IN.
IF YOU LOOK TO SELL YOUR
HOME, WHAT IS THE ADJUSTMENT,
DO YOU HAVE TO BRING THE ASKING
PRICE DOWN THE
THERE ARE PREDICTIONS SAYING
THAT BECAUSE WHEN INTEREST
RATES GO UP, LESS PEOPLE WANT
TO PURCHASE A HOUSE.
IF YOU GET READY TO SELL, YOU
WANT TO CONTROL YOUR PRICE
BECAUSE THERE'S NOT MANY PEOPLE
ON THE MARKET THAT WANT TO BUY
THAT PRICING POINTS.
MANY PEOPLE WILL JUMP IN
HOPING TO GET IT CHEAPER RIGHT.
THAT'S WHAT WARREN BUFFETT
SAYS, WHEN THERE'S BLOOD IN THE
STREET, THERE'S MONEY TO BE
MADE.
IT DEPENDS WHICH POCKET YOU ARE
HOLDING.
THAT'S THE BIG THING.
IF YOU ARE THE AVERAGE CONSUMER
AND YOU WANT TO MAKE A PURCHASE,
DO IT SOONER THAN LATER.
IF YOU ARE A RETIREE, YOU WILL
BE EXCITED BECAUSE YOU SEE A
LITTLE MORE GOING TO YOUR CD,
SAVINGS ACCOUNT, MONEY MARKET.
THOSE THINGS WILL EXCITE YOU.
WHEN YOU LOOK AT YOUR CREDIT
CARD BILL, YOU MAY BE AGITATED
BECAUSE THOSE RATES ARE
FLEXIBLE, NOT LOCKED IN.
THE APR'S ARE MOVING, THE