Federal Reserve Rate Change

[Anonymous]

As we know the Federal Reserve increase the rate by 0.25% in December 2017 and my Citi Card Apr Purchases and Cash increased 0.25% on the statement that cut 12-20-17. Sure wouldn't want any lender to miss a chance to get more interest. Funny thing, I don't ever pay interest and if I did it would be on my fixed rate local bank that is 7.9% Purchases and Cash. Most of the major cards I see posted around the financials today seem to run 14.99% to 19.99+% so it might as well be 24.99% as it is way too much and negates any rewards a person might earn.

As an add ... the Federal Reserve is quoted as looking towards a possible three rate adjustments during 2018 which other posters already pointed out.

[MrDisco99]

Are there any cards out there anymore that offer rates that low?

[CreditCuriosity]

Yes several CU's offer fixed rate CC's although most aren't rewards.  Look for themanwhocan post as he lists alot of the CU/banks (mainly CU's i believe) with low fixed rate CC's.  Although obviously Fixed rates can vary if several rate hikes happen and they end up losing their arse as a result of it.

[CreditMagic7]

So is there any concensus to if this is a last hike for many months or can we expect a continuing upward climb and frequently.

My gut tells me the new just passed tax bill will sort of keep this trend actively on the climb but i'm no economist to suggest any accuracy in that.

[Anonymous]

I love it; the Prime Rate is up 1.25% now; yet besides Alliant CU which banks/CU's have actually raised savings rates....SMH.

[Anonymous]

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@CreditMagic7 wrote:

So is there any concensus to if this is a last hike for many months or can we expect a continuing upward climb and frequently.

My gut tells me the new just passed tax bill will sort of keep this trend actively on the climb but i'm no economist to suggest any accuracy in that.

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As long as the economy continues to do well we will continue to see Prime Rate increases.  If you want some scary reading, check out the Prime Rates of the 1980s LOL. 

[galahad15]

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@CreditCuriousity wrote:

Yes several CU's offer fixed rate CC's although most aren't rewards.  Look for themanwhocan post as he lists alot of the CU/banks (mainly CU's i believe) with low fixed rate CC's.  Although obviously Fixed rates can vary if several rate hikes happen and they end up losing their arse as a result of it.

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Certainly very true, although for a fixed-rate card, any existing balances will remain at their pre-increase APR until they are paid off in full IIRC.  One of the advantanges of fixed rate cards:  rate increases are not retroactive to existing balances.

[CreditCuriosity]

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@CreditMagic7 wrote:

So is there any concensus to if this is a last hike for many months or can we expect a continuing upward climb and frequently.

My gut tells me the new just passed tax bill will sort of keep this trend actively on the climb but i'm no economist to suggest any accuracy in that.

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IMO rates will continue to raise.. Expect 3 next year especially with a new Fed Chair.  They don't want inflation getting too squirly and rates have been low way to long (unless you are the borrower of course)

[CreditCuriosity]

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@Anonymous wrote:

I love it; the Prime Rate is up 1.25% now; yet besides Alliant CU which banks/CU's have actually raised savings rates....SMH.

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Ya you think there would be more of a correlation, but of course it is all in banks favor however you cut it.  Poor retired old people 

[Anonymous]

I'm curious about the mortgage side of things. I remember months ago watching the news and there was a strong correlation between interest rate hike and a sharp decline in mortgage applications.

They basically said that Americans have gotten used to lower rate mortgages just like they have gotten used to deep discounted merchandise during the holidays during the great recession. The correlation here, is that unless shoppers see deep discounts they won't buy. Unless home loan borrowers continue to see relatively same mortgage rates, they won't borrow.

I hope that is true and isn't just some talking heads perspective. At the time I saw the news report it made sense to me. That 6% and up mortgages are a thing of the past.