CINCINNATI — The Federal Reserve announced on Wednesday it will be raising its key interest rate by .75%. That’s affecting the cost of car loans, credit cards, mortgages and much more. 

What You Need To Know

  • On Wednesday, the Federal Reserve announced it will be raising it’s key interest rate by .75%

  • It's impacting the cost of car loans, credit cards, mortgages and much more

  • Dayton resident Talibah Brown is seeing that impact as she looks to buy a new home

  • Investment adviser Jessica Tucker suggests creating a budget, looking at areas you can cut back and look at the total investment

Dayton resident Talibah Brown recently met with Jessica Tucker, an investment adviser with Bullseye Investment Management. That’s because she’s looking to sell her home and buy a new one. 

“I’ve built some equity,” said Brown. “I should probably put my house on the market and I am. However, I need a place to live now. Guess what? It’s no longer a buyer's market; it’s a seller’s market and the rates have gone up.”

The current average nationally for a 30-year fixed mortgage rate is 5.5%, according to Bankrate. That’s up 2.85% from 2021. And it’s the increase in mortgage interest rates that have made it difficult for her to find the home she wants. 

“I really, really want a five bedroom,” she said. “I may have to settle for a four because right now with the rates being so high. I just don’t know if I’ll be able to pay that type of mortgage payment going forward.”

That’s where Tucker comes into play. Despite the rise in interest rates, she said there’s several things people can do. One of the first things she suggests is creating a budget.

"Something that you can visually see so that you understand where there might already be room," said Tucker. "Because sometimes, we don’t realize we have some space already that we can utilize."

If that's not enough, she suggests looking at areas where you can cut back.

“For a lot of people, it’s food, it’s eating out, it’s conveniences,” she said. “And so where can I cut back and not cause myself stress by cutting back. But something I can actually achieve, with removing some things so that I can create some space.”

Another key she suggests is for you to look at the total size of the investment for a home, or anything else you’re looking to buy. 

“It’s not just buying a house because you can afford the payments, but saying long term do I want to pay this amount plus the interest over time,” she said. 

These are all tips Brown said she plans to implement when looking at homes moving forward,” she said. “And she now feels more confident as she continues her search for her dream home.

“I have talked to her and worked with her on how to budget accordingly and I really appreciate that aspect,” she said. “So I feel very comfortable.”