We talk interest rates with Dustin Williams from First Nation Bank.
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Today we wanted to talk with Dustin Williams from First Western Bank about interest rates and the new year.
Do you think rates will rise in 2022?
Rates will definitely rise, unfortunately. They’ve already started to rise as of now, and they’ve announced three or four more rate hikes this year. We’re anticipating even more rate hikes in 2023 as well.
What are the advantages and disadvantages of those hikes?
We’ve enjoyed historically low rates for a long time, but it’s just not sustainable. The advantage is that raising rates is one of the best ways to fight inflation. According to the Wall Street Journal, we’re at a 40-year high for inflation, so something has to be done. In addition, rates for bank savings accounts and CDs will go up.
The bad part is that payments go up on homes. You’ll be able to afford less of a house because you’ll have to pay more in interest.
What will happen when rates go up?
The first thing is that you’ll be paying more for your home, and that’s something you’ll have to anticipate if you plan on refinancing or buying a home.
To anticipate the next question, you need to buy or refinance now. Home prices are higher than they’ve ever been, but if interest rates go up and home prices don’t go down, you’ll be paying more. We don’t know what’s going to happen with the housing market, but interest rates are definitely going up, so now’s the best time to buy.
You heard it directly from a lender. Get out there and refinance or buy. If you have any questions or are looking to buy or sell, call or email us on the Taylor Team. If you need help with your mortgage loan, feel free to reach out to Dustin too. We’d be happy to help.