CHARLOTTE, N.C. — At its meeting this week, the Federal Reserve decided not to raise a key interest rate, keeping the rate level at just more than 5%.

Interest rates, which have been rising for months in an effort to curb inflation, can impact purchases on cars, homes and personal loans. 

What You Need To Know

  • Federal Reserve decided not to raise interest rates this month 

  • Charlotte realtor says interest rates not really impacting the city's housing market

  • Financial planner says you should make long-term financial decisions based on personal circumstance, not federal policy

In Charlotte, a realtor said the months of rising interest rates up this point have had a more limited impact on home buying, due to Charlotte’s small amount of inventory.

“We’re starting to see prices increase. We’re starting to see multiple offers — people going over asking again. Things that we are seeing during COVID times,” said April Crigger-Hudson on Thursday.

Crigger-Hudson said clients ask her all the time about interest ratesm but recent increases pale in comparison to historical averages.

“Interest rates are on the forefront of people’s minds right now, understandably so. But, what I want people to understand is we are still at historic lows. For instance, in 1980 we saw interest rates as high as 20%,” Crigger-Hudson said at her office.

Currently, interest rates on mortgages are hovering around 6.75%, according to her.

And, she expects them to stay there, as the Federal Reserve decided to maintain current interest rates after months of recent increases.

At the offices of personal financial planner Robert Bacharach, he said he advises clients never to make financial decisions based on headlines or federal policy moves. 

“Don’t make your decisions just based on the federal government saying that they’re going to do or not doing something. Because, it’s too hard to predict exactly how that’s going to impact the markets for the long term,” Bacharach said.

But, he warned if you have accounts with changing interest rates, like lines of credit, it is important to monitor the market.

“Those do fluctuate with the market. Those aren’t fixed rates. So, that’s something to pay attention to and check with your bankers to see where your current rates are at on those loans,” Bacharach explained.

Back at her office, Crigger-Hudson agreed, saying when to buy a home should be a personal decision based on your personal finances.

“You can buy at any interest rate, but real estate is still one of the best investments you can make in your life,” she added.

An interest rate on something like a mortgage loan is also dependent on other factors related to the buyer, like debt-to-income ratios, salary, credit score and more, according to Crigger-Hudson.