Rates Are Rising: Think Long-Term
Associated Press reported Freddie Mac’s recent annoucement that 30 year mortgage rates have risen to their highest level since March. Currently at 5.98, which is up .7 percent from last week, according to nationwide averages.
Rising interest rates are the result of the Fed’s strategy to keep inflation under control. As natural disasters have severely impacted our ecconomy in recent weeks, the Fed’s strategy may not provide the expected relief. Additionally, higher rates and increased fuel costs are further eroding the discretionary income of consumers. Many are tempted to limit or put off saving due to more immediate financial pressures.
Now, more than ever, it’s time for individuals to take the long view and save for their future. While Americans commonly plan for shorter-term expenses such as college funds for their children, they routinely fail to plan appropriately for their long-term financial needs.
For further insight, read Matt Branaugh’s, article “Save for Retirement First, then for College” on www.delawareonline.com.