JACKSONVILLE, Fla. — The biggest hike of interest rates by the Federal Reserve in nearly 30 years.
It's a jarring headline, but this week's 75% increase was expected by many financial analysts.
Still, what does that mean for you? Well, that depends on your current housing situation. Are you looking to buy a house, or have you lived in your home for years? However, the increased in interest rates could affect more than just first time home buyers.
Inflation has caused increased prices for gas, groceries and other goods. These new interest rates will affect housing, specifically for people looking for a home loan.
"For those looking to enter the market, it's going to cost them a little more," says Wealth Watchers COO, Ed Gaston. Wealth Watchers is a Jacksonville-based housing counselling and community development organization.
Gaston says higher interest rates will affect more people than just first time home buyers.
"If you're looking at a home equity line or 2nd mortgage, yes, you're going to pay more for that money," says Gaston. "Not only will this impact the cost of mortgages, but also small business loans. It'll increase the cost of what it takes a bank to get money on the street."
And if you're worried about your own personal finances and unsure about your ability to buy or even maintain your home, Wealth Watchers offers a variety of classes for people in our area.
"Not only do we do one-on-one counselling, but we do virtual classes for home buyers and homeowners," says Gaston. "Our services are core to homeownership."
Even though interest rates are being raised by the Fed in Washington D.C., Gaston and Wealth Watchers are concerned about people living in Jacksonville.
"A healthy economy is based on homeownership and housing, so we have to make sure that homeownership is healthy," says Gaston.
If you would like more information about Wealth Watchers and their services, they can be reached by phone at 904-265-4736 or by email at email@example.com