If interest rates go up, you may need to act now

Good time to buy for first time homeowners.

SPRINGFIELD, Mass. (WWLP)– The latest government report shows the economy is making improvements. 22news reporter is working for you with why that could mean an increase in future interest rates and what will mean for your spending and saving.

The latest government data showed a four percent increase for this year’s 2nd quarter thanks to a boost in consumer and business spending. Some financial experts say if improvements continue it may force the Federal Reserve to bump up interest rates.

Mark Teed, from Raymond James and Associates in Springfield, explained that in 2008, when the financial crisis hit, the Federal Reserve dropped interest rates to zero to create an incentive for people to go out an buy homes and cars and other things that boost the economy. “The deal we made in 2008 was as soon as the economy picked up we would then start to raise rates,” Teed explained.

So what will that mean for you? For those looking to buy a home or refinance a loan it means rates could be at their lowest right now, making it a good time to act.

Teed told 22News low rates help things like the car business and real estate market. He said they are likely to go up by the start of 2015, so in the meantime you should think about the following:

-If you had been thinking about refinancing, it would be good to do it now, while rates are still on the lower end.

-For first time homeowners, now is a good time to buy.

-If you have been shopping for a new car, you could save yourself money in financing interest rates if you purchase before end of year.

-If you are considering a home renovation and need a loan for that, do it now while rates are reasonable.

But for those looking to maximize on their savings through interest rates it now is the time to not act. Teed told 22News if you have something like a CD savings ready to be locked in for the interest rate then try to lock in for a short period or wait another six months before locking in. If interest rates go up next year, you want to wait to get those new, higher rates in order to help make your money grow quicker.

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