Will they or won't they? Several times this year, the Federal Reserve System raised the benchmark interest rate and seemed gung-ho to do it again by the end of the year. If you're about to get a new mortgage, these interest rate hikes will directly affect you, meaning you'll pay more over time for that new house. And if you're not in the market for a new mortgage, federal interest rate hikes will still hit you, albeit indirectly.
"High interest rates aren't good for consumers," says Josh Bivens, director of research at the Economic Policy Institute (EPI) in Washington, D.C. "The idea is to slow consumer spending because the Fed thinks the economy is running too fast and will overheat. But not only does price inflation slow down, but so does wage inflation—the purchase power of your salary."
Less money to spend isn't fun—but are there any unexpected silver linings that come from higher interest rates? I asked economics experts for their takes. The bottom line? You might benefit if you're a money saver (or want to be), have extra cash to purchase high ticket items, or interestingly, are an apartment developer.
from Apartment Therapy | Saving the world, one room at a time https://ift.tt/2AyTSHl
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