COLUMBIA, S.C. — The Federal Reserve raised interest rates three-quarters of a percentage point on Wednesday, a move the nation hasn’t seen since the early 90s.
Economists say these rates could stay this high for months to come.
Carl Blackstone from the Columbia Chamber says the reason rates are increased is to help combat rising inflation, saying, “Prices are going high, inflation’s going high, and so they’re trying to pump the break a little bit.”
But the interest rates we are seeing today are hitting a level the nation hasn't seen in nearly 30 years, Blackstone saying it’s going to cost people a lot more to borrow from the bank. “We haven’t seen a rate rake this high in 28 years, so yes it is pretty aggressive for the federal reserve to do this," he said.
Blackstone went on to say, “They raise interest rates to try and cool off the economy... What they’re trying to do is to encourage people to save money versus spend money.”
Blackstone saying long term, these high rates will slow down the country’s economic growth, saying, “Instead of growing at a clip of 2.8% they’re going to revise the number down to 1.7%.”
Real Estate Broker Andy Brumbaugh says this spike was done to balance the economy, “What it means is hopefully going to start to balance out the market, right now it has been so skewed so heavily one way that its been difficult.”
Brumbaugh saying, those looking to buy will need to adjust their spending, saying, “It lessens your buying power, so you’re going to have to adjust your price point, adjust what your expectations are, and what that home's going to look like.”
Both Brumbaugh and Blackstone saying these higher interest rates are here to stay, with Brumbaugh saying, “I don’t think you’re going to see any big swings happen, I think we're pretty settled in.”
While Blackstone said, “I do think we will have a different market come September.”