Higher interest rates lift Michiana’s borrowing costs and savings

Federal Reserve officials raised the benchmark interest rate by 0.25%, bringing rates up to between 3.45% and 4%. The move is expected to affect household budgets, mortgage costs, business loans, and savings products in the region.

Kesha Farlow, founder of IMPower Center, said the change will be noticeable for people making major purchases, such as buying a car or securing a mortgage. She notes that the cost for business owners to borrow will rise from about 6% to roughly 9%.

More than 17% of Michiana residents live below the poverty line and will feel the impact of higher interest rates on debt repayment. Farlow also highlighted that higher rates provide an opportunity for local banks and credit unions to offer better returns on savings products.

Read the full story at wndu.com.