With inflation running at the hottest level in 40 years, Wall Street is bracing for the possibility of interest rates rising even higher than previously expected.
"The Fed is likely going to send a hawkish message at the July meeting, and it would be a mistake to think that a rate hike less than 75 basis points is in the cards," Charlie Ripley, senior investment strategist at Allianz Investment Management, said in a note this week."The question that remains from here is how high the Fed will have to raise rates to bring down inflation.
The same goes for store credit-card lines, including lines of credit from Macy's, Walmart and Target, Carlisle noted. "Compare what you'd expect the adjustable rate to go up to in the next year or two to what your payments would be on a fixed loan," Carlisle said."You have to spend time investigating the difference and see if you can afford a slightly higher payment in exchange for a guaranteed payment."
"If you are considering refinancing, get the refinance done before the mortgage rates adjust. Check with your lender on how your rate is locked in," Pon said.
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