Experts advise consumers shouldn’t panic over the Federal Reserve raising interest rates.
"A small rate hike like this is not going to have a whole lot of effect now,” CEO of The Perryman Group Ray Perryman said. “We can only hope it starts to bring inflation under control in which case that will really start benefiting people who are on a relatively fixed income."
The Perryman Group is a Texas-based economic research company.
Perryman explained some of the areas where you will likely see changes because of the interest rate hike.
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"If you do have one of the more competitive credit cards, you have good credit and it’s tied to the prime rate almost automatically when the Fed increase its funds rate the prime rate will go up by the same amount,” Perryman said. “So, it will cause a little bit of an increase in credit card rates."
It may also be seen in the car industry pricing that's still facing chip shortages.
Any impacts on home mortgages may not be alarming.
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"We've had mortgage interest rates as high as 16, 17, 18 percent in America,” President of JPAR Real Estate Mark Johnson said. “We know that rates are going to be historically low and still very affordable. One of the biggest ways to build wealth in America is through owning real estate."
But still, there are some warnings for first-time buyers.
"The one thing I also warn new home buyers about is if they think this is going to bring prices down I don't think it will right away because there is such high demand and such a shortage," CEO of Briggs Freeman Sotheby’s International Realty Robbie Briggs said.
If you are concerned about your budget experts say find ways to cut costs now.
"For many people that will allow them to maintain their lifestyle by eliminating some of the waste they have in their day-to-day living,” CPA and attorney Bill Dendy said. “Getting rid of things like automatic subscription services for products they’re not using."
Experts said they expect several more rate hikes this year.
