Although nobody knew exactly when it was going to happen, the Federal rate increase last month had been predicted by financial markets for some time now. It’s the first increase since 2006, and the first time the Feds have implemented any rate hike since the most recent recession. (Federal Reserve interest rates went from a range of 0% to .25% to a new range of .25% to .5%.)There was instant chatter about more rate hikes to follow, possibly as soon as March of 2016. However, more recently, traders anticipate the next hike may not be until early 2017. The current rate hike appears minimal, but many still wonder if the economy is strong enough to handle even a small rise.
Rate hike may push homeowners into foreclosure
The housing market is supported by more than low mortgage rates, yet some home-buyers may still find it more difficult to get approved for a new home loan. Millions of American home owners and home buyers are uncertain about how this most recent federal rate increase will affect them both short and long-term. Some current owners fear that a small increase will equate to significantly more money taken from their wallets. Other consumers speculate higher interest will have minimal personal impact and a mostly positive mark on the economy. Chief economists and market strategist also have varying opinions. Some say that the increase is so small that it will have a very gradual and nearly unnoticed impact on mortgage rates. Other experts say higher rates could mean as many as one in five homeowners may face losing their homes.
Bankruptcy can save your home
The increasing cost of buying a home means fewer people will qualify for a mortgage loan. The larger problem may involve those who already own a home, especially those who have an adjustable rate mortgage, or those that may have taken out a home equity line of credit. It may be too soon to know what the full financial impact will be, but one thing is for sure, higher interest payments and financial pressure from many different angles may put your home at risk of foreclosure. If you find yourself facing foreclosure, don’t wait too long. (Don’t throw in the towel too quickly either.)How will you know what to do? Talk to a Debt Advisors Bankruptcy Attorney about your options. The consultation is free. If you qualify, Chapter 13 bankruptcy could save your home from foreclosure.