Interest Rates Play Hard to Get: The Fed's Flirtation with Inflation!

Rates are high, wallets sigh, and the housing market wonders why!                                                                                                                                                                                                                                                                                                                                                                                                                 May 22, 2024 | [Read Online]( Hey, Future Real Estate Stars! The Federal Reserve, the central bank of the United States, hasn't stayed the same interest rates since last July. This was unexpected because they had been increasing rates to control inflation. Although inflation has decreased since its peak in 2022, it's still higher than the Federal Reserve prefers. Because of this, they are being careful and not reducing interest rates right now. STAGNATION Inflation Slowdown Throws a Wrench in Fed Rate Cut Plans [5-minute read]( Inflation and Interest Rates: What's Happening Right Now? Right now, inflation is slightly over 3%, higher than the target of 2% that experts aim for. Core inflation, which doesn't count the cost of food and energy because they change a lot, is even higher at 3.8%. This means inflation is sticking around longer than expected, and it might take a while to see lower interest rates. How High-Interest Rates Impact Everyone Even though the Federal Reserve hasn't changed interest rates recently, we're all feeling the effects in different ways: - Here's some good news if you're saving money! Banks offer great interest rates on savings accounts, with the best rates increasing to 5.35%. That's much better than the average rate of 0.6% we saw not too long ago. - While savings accounts enjoy high rates, the returns on CDs have dropped slightly. The average return on a 12-month CD is about 1.81%. It's lower than before, but CDs are still a secure place to keep your money if you don't want to risk investing in the stock market. - On the other hand, if you have a credit card balance, the interest rates are high, around 20% on average. These high rates will stay high for a while, so it's a good idea to pay off this debt quickly. - Mortgage rates depend significantly on what the Federal Reserve does and what people think will happen with the economy. These rates have increased, reaching 8% last October and now around 6.6%. By the end of the year, they might drop to about 6%, which could help the housing market pick up again. - Experts like Rossman think that the average rate for a 30-year fixed mortgage might drop to about 6% by the end of the year. This drop could truly assist the housing market, which is currently facing tough competition and insufficient homes available to purchase. High home loan rates have kept numerous property holders from selling their homes. If rates go down, it could encourage these homeowners to sell. What This Means for You With rates staying high because of ongoing inflation, you should be careful how you save, spend, and borrow money. There are still chances to benefit from the current financial situation, like getting good returns on savings accounts and wisely managing credit card debt. Want the full lowdown on these high rates? Click [HERE](and dive into the nitty-gritty of dollars and sense! Until next time, The Real Estate Investing News Don't let the rate talk get you down – remember, every percentage point is just a step on the property ladder. Climb wisely! Top Picks to Stream [High Prices to Dominate Spring's Housing Market in 2024 🎬]( [China’s Economy Beyond Debt 🎬]( Ready to turn your real estate dreams into reality? [Sign Up]( for our newsletter for more insider tips and expert advice on funding your investment journey! 🏠[Sign Up Here!]( [tw]( [yt]( Update your email preferences or unsubscribe [here]( © 2024 REAL ESTATE INVESTING NEWS 228 Park Ave S, #29976, New York, New York 10003, United States [[beehiiv logo]Powered by beehiiv](