10 Things to Watch When Interest Rates Go Up
Here's how rising interest rates affect bond prices, home mortgage rates and more.
Prepare for rising rates.
The Federal Reserve raised interest rates by 0.5% on May 4 – the largest rate hike since 2000. This was the second rate increase in 2022, although the latest hike was slightly more aggressive over the previous increase of 0.25% as Fed Chairman Jerome Powell aims to fight high inflation. Powell said he anticipates further interest rate hikes will be on the table in future meetings this year, so consumers can expect interest rates to continue to go up through the duration of the year. This means prospective homebuyers, homeowners with variable mortgages and investors will begin to feel the effects of rising interest rates, if they're not already. To protect your money, here's what to watch for when interest rates go up.
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Emma Kerr is not affiliated with US Wealth Management, LLC and LPL Financial.