x
Breaking News
More () »

Interest rates have gone up. Here is where you will pay more

For the first time since 2018, interest rates went up. What does that mean to you? Here's what we learned.

WASHINGTON — This month, the Federal Reserve raised interest rates to fight inflation.

It got people talking online about what that really means for people. Where will interest rates hit them in the wallet?

QUESTION:

What are the three biggest ways interest rates affect Americans?

OUR SOURCES:

ANSWER:

Our experts said you’ll see the increases in loan costs, credit card debt, and your retirement.

WHAT WE FOUND:

To understand what is affected, you have to understand what interest rates are that went up.

RELATED: Stocks fall after Federal Reserve signals rate hike 'soon'

“(This is the) rate at which the Federal Reserve loans the money to its member banks,” Bill Hoagland said.

The interest rate on your loans uses the reserve rate as a baseline, So when it goes up, all new loans go up.

“If (you) went a loan to get a car or if you want to get a mortgage-you’ll see it rise there,” Peter Ricchiuti said.  

Th second effect is credit card debt can go up.

“Absolutely, now is the time to pay your cards off,” Hoagland said.  “If you can do it.”

The third effect is in the stock market.

“There are certain kind of stocks that get clobbered when interest rates go up, and certain ones don't,” Ricchiuti said. “The ones that get clobbered are growth stocks.”

Our experts say you’ll see this in your 401k or retirement accounts.

WUSA9 is now on Roku and Amazon Fire TVs. Download the apps today for live newscasts and video on demand.

Download the WUSA9 app to get breaking news, weather and important stories at your fingertips.

Sign up for the Get Up DC newsletter: Your forecast. Your commute. Your news.
Sign up for the Capitol Breach email newsletter, delivering the latest breaking news and a roundup of the investigation into the Capitol Riots on January 6, 2021.

Before You Leave, Check This Out