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It follows that credit card rates spiked along with the Fed’s string of 11 rate hikes starting in March 2022. But when the Fed started slashing interest rates in September, with an initial cut of half a percentage point, the average credit card interest rate fell by just 0.13%. For some retail credit cards, interest rates are still rising. The average retail card rate increased by more than a full percentage point over the past year, according to Bankrate. McBride advises consumers against signing up for a store credit card with a high rate during the peak shopping season.
Persons: , Greg McBride, ” McBride, Matt Schulz, LendingTree’s, ” Schulz, McBride, Cardholders Organizations: Federal, Fed, CNBC, Consumer Financial, Federal Reserve Bank of New Locations: Federal Reserve Bank of New York
“If the housing market were going to crash, it would have already crashed by now,” said Daryl Fairweather, chief economist at Redfin. “The housing market has been so resilient to interest rates going up as high as they have.”Here are five housing market predictions for 2025, according to Fairweather and other economists. If fewer homes are built in a supply-constrained market, prices might grow much higher, said Channel. More than 21 million renter households are “cost-burdened,” meaning they spent more than 30% of their income on housing costs, according to 2023 U.S. Census data. “Rent prices typically decline in the colder months of the year,” as fewer people are apartment hunting in the late fall and winter seasons.
Persons: Redfin, , Daryl Fairweather, Fairweather, Selma Hepp, Donald Trump, Jacob Channel, ” Redfin’s Fairweather, , Hepp, CoreLogic, Donald Trump’s, ” Jessica Lautz, ” Fairweather, CoreLogic’s, “ We’ll, Redfin’s Fairweather, What’s, Milton Organizations: U.S, Redfin, LendingTree, , D.C, LendingTree’s, National Association of Realtors, CNBC, Locations: U.S, Austin , Texas, Seattle , Washington, New York City, Florida , California, Texas, California, Florida, Asheville , North Carolina
Combined, those two factors can make it very challenging to break into the housing market. Currently, it represents about 3% of the housing market, although that rises to 5% among first-time buyers, according to NAR. Imagining a 20% down payment, for instance, may cause potential buyers to throw up their hands in despair. So there is wiggle room, and you might be more equipped to buy on your own than you think.”Nonetheless, the harsh realities of the housing market may dictate more co-buying in future. With high prices and high interest rates, some potential buyers may not have much of a choice – and this relative rarity in the real estate world may soon become more common.
Persons: Dorothy, Blanche, Rose, Sophia, , I’m, , Jacob Channel, Gus Gibbs, Gibbs, Jessica Lautz, Howard Pressman, Lauren Young, Aurora Ellis Organizations: LendingTree, National Association of Realtors, Federal Reserve, NAR, , Housing Administration, Thomson Locations: Boise , Idaho, Vienna , Virginia
To combat high inflation, the Federal Reserve has raised interest rates this year at the fastest clip in 40 years. But analysts warn that high interest rates and potentially unfavorable terms can trip up shoppers, eroding the hoped-for savings. That’s the highest interest rate since the credit card marketplace began tracking it for store cards in 2018. Using credit cards can help build credit. And with fees and rates for new store cards even higher than the current record levels for traditional credit cards, “many people’s financial margin for error is basically zero,” Schulz says.
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