Car and housing industry experts talk about expected interest rate hike

JACKSON, TN (WNBJ) - The Federal Reserve announced this week that interest rates on cars and houses are likely to increase this March. A dealership and a realtor share their thoughts on the interest rate hike.

“I would imagine come springtime and summertime when the rates do go up that we will see it affect things, where rates that are normally 3, 4, and 5 percent range may jump into the 6,7, and 8 range,” said Mike Steinbach, the Sales Manager with Robinson Toyota.

Robinson Toyota talks about what is causing interest rates to rise.

“Inflation is a driver right now and sometimes we consider inflation bad and it is. However, it also drives the market in a consumer-regulated way, where people are still creating a demand in the automobile industry. I foresee that the demand will continue to remain high,” said Steinbach.

When buying a car, Robinson Toyota recommends buyers do their homework on all prospective car purchases and also improve their credit score to receive the best interest rate on their car.

Interest rates on houses are expected to climb as well. Realtors with Town and Country discuss the hike.

“So, I don’t foresee the housing prices taking a big hit anytime soon because compared to other parts of the country Jackson is still a great place and affordable to live,” said Madaline Hudson, a realtor with Town & Country Realtors.

Town and Country Realtors give tips to home buyers who may be seeing higher interest rates.

“If you want a good interest rate, you need a good credit score. That is just number one. The better your credit score, the less risky your loan, the better rate you can expect from a lender. You do need to be talking to a local lender,” said Hudson.

The Federal Reserve is hoping this interest rate increase will lessen inflation.