Prime Rate Increase
The Federal Reserve increased the Prime Rate on Thursday, March 17th to 3.50%. This is an increase of 0.25% and the first rate hike in nearly three years.
This initial rate increase is the first of six more planned Prime Rate hikes by the end of 2022.
What does this mean for you? If you have any adjustable rate loans (typically mortgages and HELOCs), you’ll likely see an increase in your monthly payment and will pay more in interest over the life of the loan.
Most credit cards have adjustable rates as well, so card holders carrying a balance could see an increase in monthly interest charges.
If you have any questions about how this Prime Rate increase might affect you, don't hesitate to contact us.