This brings the Prime Interest Rate, which banks and lending institutions use as a benchmark for setting many interest rates, up to 8.25%. Other interest rates have also risen in anticipation of this decision, with the yield on Ten-Year Treasuries reaching levels not seen since May 2002.

According to Bloomberg.com, current interest-rate futures indicate an 80% chance that the Fed is not done yet and will increase rates again in August.

Many interest rates and monthly payments are going to increase!

Many Adjustable Rate Mortgages, which are better known as ARMs, are tied to indexes that are very sensitive to short term interest rate hikes. These mortgages could have interest rates that now exceed 7.50% and could adjust to even higher rates later this year. Home Equity Lines of Credit now carry interest rates that may exceed 10.25%. Credit card interest rates, which are often tied to the Prime Rate, have reached recent historic highs.

Interest Rates for Fixed Rate Mortgages are still very attractive!

If you're considering purchasing a home or investment property, this is the time to do so. Waiting will only lead to higher monthly payments for the same piece of real estate. Many areas are also transitioning into buyer's markets, making this one of the best times to buy a home in recent years.

Now is also an excellent time to refinance your mortgage! Combine higher interest rate loans and lines of credit into an affordable fixed rate loan, complete with lower monthly payments.

Call me today and I will prepare a FREE Analysis to see if a new home loan program could benefit you.