When the Federal Reserve changes its policy, we pay attention. Why? Because we are in the housing business and our goal is always to educate our clients and our community, to prepare them and help protect what is most commonly their largest asset, the equity in their home.
We are experienced REALTORS; we are not financial advisors, so we partner with and look to the pros for guidance. Check out this email from Suze Orman that popped into my inbox this morning. She always brings the basics and she's a familiar face!
Suze sees the Fed's signals of possibly imposing six more rate hikes over the rest of 2022 as a BIG DEAL. She has some great points, especially regarding credit card debt. In the last quarter of 2021, U.S. credit card balances increased by $52 billion to $860 billion - the largest quarterly increase in the 22-year history of the data according to Forbes. This is a BIG DEAL for consumers who are carrying those balances if the Fed imposes those hikes. Most credit card rates are VARIABLE and the card can change their rate at any time. Car loans will also creep up, on top of the already inflated purchase prices! Fixed mortgages are true to their name, fixed! Phew!
Debt has a tremendous and lasting impact on homeowners and home purchasers. It's tax time, a good time to take an inventory of your debt and make adjustments where necessary to protect your purchase power and your assets. We offer guidance and strategic planning for all your real estate goals and it's always complimentary. Give us a call 978-356-8922, any time. Team Windhill.