Federal Interest Rate Hike

Federal Reserve Rate Highest Since 2001

According to a Press Release by Board of Governors of the Federal Reserve System, The Federal Reserve raised the target range for the benchmark interest rate by 0.25% on July 26 and left the door open for more rate hikes this year.

Wednesday's rate increase brings the fed funds rate to the highest level since March 2001. This is the 11th increase since March 2022. 

The Fed still views inflation as "elevated" and noted that they remain "highly attentive" to inflation risks.

According to Yahoo Finance, this is how this affects you: 

• Interest rates on personal loans have risen from 9.39% at the beginning of the Fed rate hikes in March of 2022 to 11.48% in May 2023. 

• When the Fed hikes began, lenders were pricing 30-year fixed-rate mortgages around 4%. After peaking at 7% last October, home loan interest rates eased slightly but have bubbled back up.

• Credit card interest rates have moved from an average of 16.65% to over 22%.

If you are looking to buy sell or invest in residential real estate, we can help. 

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