Where Do Interest Rates Head From Here

As many people contemplate on whether to make major purchases or to wait, the main thing on everybody’s mind is the movement of interest rates. Since I, like many Americans really don’t know much about the complex details involved in interest rates and where they are heading, I turn to expert advice. Recently I viewed an interview with Greg McBride, senior financial analyst at Bankrate.com, on Yahoo Finance in which he talked about his beliefs of where we are when it involves interest rates.

During the interview the question that really stuck in my mind was, “Will credit card rates rise or fall?” The answer, although not what myself and many consumers were looking to hear, was that he believes that credit card rates will continue to rise. The reasoning behind this, credit card issuers will continue to raise interest rates and cut credit limits to increase revenue since they will be forced to fall under regulation early next year. However, McBride does state that consumers with good credit and are in good standing do have a lot of bargaining power to shop around and get better deals.

Other questions during the interview involve rates for new home purchases, refinancing, savings accounts, and CDs. If McBride is correct, now would probably be the best time to get more information and act on many of these opportunities. As far as credit cards, it could be a very bumpy ride as many Americans look forward to February 2010.