The Federal interest rate is anticipated to increase by 3% and KOAA News5 wants to know which major purchases are you putting off due to inflation.
The Central Bank will raise its benchmark interest rate by 0.75 percentage points according to market projections.
Editor's note: This survey is not based on scientific, representative samples and is solely for KOAA purposes.
RESULTS:
What major purchases are you putting off due to inflation?
All of the above - 48 %
None - 19 %
Home improvements - 12 %
Buying a new car - 11 %
Travel/vacations - 10 %
We're following this survey throughout the day and into tomorrow. Tune in to News5 at 4 p.m. as we review the results!
KOAA's News5 reporter Andy Koen took a look in March at how these increases have impacted the Colorado Springs housing market.
For every 0.25 percent increase in interest, someone buying that $450,000 home can expect to see their loan payment increase by $60 per month. Over the life of a 30-year mortgage, that extra quarter-percent means $10,000 more in payment.
He spoke with Ann Kidd, Chair of the Pikes Peak Association of Relations who believed that rising interest rates would force some buyers out of the market. Right now it's a gentle nudge, Kidd said. However, that nudge can become a push if there's a string of successive rate hikes.
The silver-lining with the current real estate market is that many homeowners are now sitting on record levels of home equity thanks to the surge in home values
Jennifer Johanns, a Loan Consultant with Loan Depot said it may be a good time for consumers to consider consolidating their high-interest credit card debts into a home equity loan.
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