Inflation Is at 40 Year Highs. Why Should It Matter to You?

For most of your life, borrowing has been relatively easy. Think about it.. It’s been rather easy to get a credit card, get a loan for a new car, or even to get a mortgage for that house you've been eyeing.

But with Inflation running high, the Fed is planning on raising rates in the next year.

But how would this affect you?

Well this decision is quite big for everyone in the economy - form corporations to individuals. Increasing interest rates would increase your rates in mortgages, student loans, auto loans and especially credit cards.

Let's dive into some interesting numbers for mortgages:
The average rate on a 30-year fixed-rate mortgage was 3.92% its highest level since May 2019 

• At this rate, people are going to soon find out their houses are “worth” much less than they think.
• Size of mortgage covered by $3,000 monthly payment: 
  • 1 year ago : $730k
  • Today : $640k

This is a significant difference, close to $100k that is not covered by the same payment., and this is down to the increase in rates.

Today, on Things Have Changed, we’re going to talk to you about this rising inflation environment and the down stream effects of higher interest rates on your everyday lives!

Check out our previous episodes on rising Inflation:

• Americans Are Getting Fed up With Inflation
• Food, Fuel, Rent... Why is Everything Getting More Expensive?
• Lumber Prices Have Been Surging. Could Other Commodities Follow Suit?