The first interest rate hike is expected to take place in March.
HUNTSVILLE, Alabama – The pandemic is having a ripple effect on almost everything from inflation to the supply chain.
We are now talking about an interest rate hike.
Dr Qian Shen, director of the MBA program at the School of Business and Public Affairs at Alabama A&M University, said we expect interest rates to rise at least three times this year.
“The first interest hike, they expect to happen in March. So most experts say whoever wants to get a car loan or get a mortgage, has to do it now,” said Shen.
Shen says the interest rates will be progressive.
“So they’re not going to publish them overnight. It doesn’t happen right away. So there will still be room. Another point now, the interest rates are now literally zero.
Another good news is that interest rates will not be as high as they were four decades ago.
“So once they get the interest rate hike, it won’t be high, compared to what happened in the 1980s, the mortgage rate was easily 17 or 18 percent.”
However, be careful with the payments if you are a certain lender.
“Now, with student loans and auto loans, consumers are likely to see slightly higher monthly payments. “
Shen suggests that if you guarantee your loans now, you shouldn’t have any problems.
“Keep in mind to always do fixed rate loans, not adjusted loans, because in the near future, adjusted loans will have a higher interest rate,” Shen said.