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Interest Rate: Expect a spike in 2022

Interest rates are expected to rise this year, and it will impact things like credit cards or mortgage rates.

cash sitting on a counter representing higher interest rates and inflation

In March a meeting will determine whether interest rates will need to rise in 2022.

CME Group’s FedWatch Tool has determined the probability of an increase by 57.6%.

Interest rate before 2022

The Federal Reserve determines increases in federal funds, which haven’t seen a rise in rates since Dec. 2018.

They dropped in 2019 by 2-2.5%.

Interest was lowered even more when the pandemic hit in 2020.

Following that, the rates dropped to zero.

Finger Lakes Partners (Billboard)

Inflation: 7% increase in December

Interest rate in 2022

The meeting in March will decide whether rates will increase.

There is a possibility that they rise four times the current amount.

Between the end of 2022 and 2024, it’s projected that rates will go from .9% to 2.1%.

Tax refunds in 2022 may be much smaller

What will happen?

If you want to refinance your mortgage or loan, do it now before interest sky rockets.

It’s better to get a lower rate while you can.

You also could take out loans while the rates remain low to consolidate debt or get ahead.

Changes coming in 2022 for student loan debt

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