Bankers offer advice for homeowners, consumers as Fed fights inflation by hiking interest rates
Upping that all-important rate, which had long been near zero, is one of the tools the Fed has used in the fight against worrisome inflation. On May 11, the Consumer Price Index showed that prices jumped 8.3% in April, compared with the same month in 2021.
The increase means borrowers will pay more for products like mortgages, car loans and credit card debt. In Las Vegas, where the median price for a single-family home was a record $475,000 in April, now would be a good time for homeowners to brush up on their mortgage paperwork, said David Herpers, a senior vice president and head of digital banking for Credit One Bank.