Advice for homeowners after the latest rate hike

Amid this uncertainty, TransUnion offers consumer guidance as the Fed tries to put the brakes on inflation.

“From a consumer credit perspective, the biggest impact of these rate hikes on borrowers will continue to be in the mortgage market, and the holiday shopping season will increasingly impact the credit card industry,” he said. said Michele Lanelli, vice president of US research. he consults with TransUnion, he told Mortgage Professional America in a statement.

read more: Variable rate mortgages – the answer to housing market volatility?

Llanelli offered advice to those considering buying a home, suggesting cutting back on traditional financial instruments until economic uncertainty abates. If interest rates and house prices fall in the not too distant future,” she said. “For homebuyers, variable rate mortgages may continue to be popular among consumers looking to lower their monthly payments in the short term. Consumers who are already in the market may continue to turn to HELOC and HELOAN instead of mortgages Finally, on the credit card side, this latest rate hike will increase the minimum monthly payments and increase credit card usage. It will have the most severe impact on consumers who have not paid their balances in full.”

In a June interview, Melissa Cohn (pictured below), regional vice president of William LaVeyse Mortgage and a 40-year mortgage industry veteran, said while inflation remains subdued, at least in the short term. advertised the use of variable rate mortgages.

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