x
Breaking News
More () »

What the Fed Interest Rate Hike Means for You

HONESDALE — So what does the fed move today mean for not just Wall Street, but for Main Street America? It’s a little bit of a mixed bag. Depending ...

HONESDALE -- So what does the fed move today mean for not just Wall Street, but for Main Street America?

It's a little bit of a mixed bag. Depending who you talk to the rate hike has its pluses and minuses. Some of the banks in Honesdale have stood since before there was a Federal Reserve and this latest increase is not expected to upend business in any big way.

From real estate to auto loans and your money in the bank, the Federal Reserve’s rate hike is bound to make an impact on your dollars and cents depending on if you're borrowing or saving, buying or selling.

Banks like the ones in Honesdale will now operate under the quarter-percent increase whether they're loaning money or handling investments.

“We’re hoping it has a good impact on the economy, that’s what it’s geared to do, stimulate the economy,” said Honesdale National Bank Vice President Mark Graziadio.

Graziadio figures the short-term rates may not affect many people in their everyday lives.

“Some commercial loans, commercial lines of credit,” he explained. “It will cost them a little more going into 2016.”

But the rates are still historically low for Dave Harvey, he wishes more people were able to get loans and believes this move by the fed won't be felt as much by John Q. Public.

“Only make it a little more interest for people who can get the loans will have to pay a little more,” said Harvey.

While some folks might start to see a bigger return on their investments like retirement accounts or C.D.’s, folks who sell cars and trucks said anyone who takes out a loan may end up paying more because of that interest rate over a longer period of time.

“I believe it’s going to affect everybody not in a positive way. Honestly, I think it could hurt us more than help us but it’s been good for a long time,” said Wayne County Ford General Sales Manager Brian Dunda.

Realtors are also less than enthused to see interest rates climbing even though mortgage rates are still considered low.

“Anyone with money in the bank is happy. I’m happy for different reasons, I’m not happy as a realtor for our industry,” said Tim Meagher of ReMax Wayne.

So to break it down for you, realtors said if your borrowing rate goes from 3.9% to 4.1% on a $225,000 mortgage then you'll be paying $26 more per month.. For some that could be a deal breaker and that's just one facet of the financial system that could be affected by the interest rate hike.

Before You Leave, Check This Out