3 On Your Side: Expect Interest Rates To Climb In 2015
By Jim Donovan
PHILADELPHIA (CBS) -- Do you plan on purchasing a car in 2015? Or maybe you're considering buying or refinancing a home? As the Federal Reserve looks to raise interest rates for the first time since 2006, 3-On Your Side Consumer Reporter Jim Donovan takes a look at how it will impact your wallet.
With all signs pointing to the fact that the Federal Reserve will be raising interest rates in 2015, there's going to be a trickledown effect on everything from home and car loans to credit cards and bank accounts.
"The prospect of rates going up has consumers I think a little unsettled," says Bankrate.com's Greg McBride. But he's quick to point out that even with a few modest increases, we'll still be in a low rate environment.
Mortgage rates are expected to creep higher beginning in the second quarter of the year. The good news? McBride says, "I do expect mortgage rates to remain well below the five percent mark throughout 2015."
If you're market for a new or used car? According to McBride, "We will see rates trending a little bit higher in the second half of the year following any interest rate move by the fed, however the impact that this actually has on affordability is little to none. So it's not something that car buyers need to lose sleep over."
The interest you'll earn on savings accounts, money markets and cd's will see modest improvements. But don't expect that it will make you rich as cash investments will still be earning less than the rate of inflation.
Credit card interest rates will most likely move up too. If you've been considering taking advantage of a zero percent balance transfer offer, you'll want to jump on that sooner than later.
For more information visit: http://www.bankrate.com/finance/mortgages/interest-rates-forecast.aspx
