Transcript for Feds hike key interest rate for the second time in 3 months
To the economy now. The federal reserve raising interest rates for the second time in three months. Up a quarter point to 1%, and that rate is linked to many other interest rates that affect you. ABC's chief business correspondent, Rebecca Jarvis, with what this means for your money. Reporter: Tonight, the impact of that rate hike on your wallet. 29-year-old nurse Ashley Warren has been searching for her first home for a year, all the while watching those mortgage rates creep higher. I have noticed them rise about approximately .5%, on the interest rates for putting down for a home. Reporter: Mortgage rates already factoring in today's hike, now a $250,000 30-year-fixed rate mortgage will cost almost $100 a month more than it would have last year, a difference of more than $25,000 over the life of the loan. That's definitely made me more aware of the time that I have to buy a home, and I want to be -- make sure that I buy it in a timely fashion. Reporter: Interest on private student loans, car loans, and credit cards also now going up. The average credit card balance now more than $5,000 with the fed expected to hike rates two more times this year, experts recommend moving fast. And paying it down, or consider converting to a 0% interest rate credit card but pay attention to fees, and when those teaser rates expire. So Rebecca, more expensive to borrow, but is a silver lining. Reporter: Savers and retie Raes get more in the bank. Thanks so much.
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