March 2017

Interest rates increased again in March, after going up in December.  Fed chair Janet Yellen indicated that they may increase rates several more times this year.  Rate increases are good for savers who have been suffering with little interest on their savings, although it may take some time before seeing the benefit.  A series of rate increases may be good for those homeowners who are selling, especially early in the upswing of an increasing interest rate cycle, as buyers scurry to lock in rates before they increase again.  Rates are still near historic lows, yet if rates do continue to increase, today’s rates may be the best for the foreseeable future.  Interest rate increases hurt borrowers as the cost of loans increase, especially for homeowners with adjustable rate mortgages and those with credit card debt.  Best bets: pay off credit card debt and lock in a fixed-rate mortgage.