ROCHESTER, N.Y. (WROC) — Despite how challenging it is to afford or take out loans or make any big purchases amid inflation, there are still ways to meet your budget.  

The latest economic hurdle is the Federal Reserve raising interest rates again, but financial and housing experts show how you can maneuver through these economic hurdles.  

While the Federal Reserve continues to jump interest rates to fight inflation, it can still make it difficult for you to budget your finances to buy a house, car, or other big purchases. Both banking and Real Estate experts believe now’s the time to re-evaluate your savings.   

One of the first things you’ll want to do is clear out massive credit card debt, to give you more chances to save in your bank accounts.  

“In times of higher interest rates, it’s exceptionally important people have a savings account set aside to turn to an emergency fund,” Thomas Dambra, CEO of Family First of New York Federal Credit Union, said. “If you have high-interest credit cards that are in the double digits then those should be paid down.” 

Borrowing has continued to rise still, as supply chains opened back up. But interest rates on mortgages have been hit the hardest in an already competitive market.  

“A year ago you could get a mortgage rate in the 3% range and today that mortgage rate is over 6%,” Dambra explained. “If you’re looking at a $200,000 home, that’s an extra $350 a month.”  

Those in real estate like Brandon Weeks urge homebuyers not to panic seeing rates at that level. Because it’s similar to where rates were before the pandemic.  

“Back in 2007, 2008, and 2009 they were at 6.2% so traditionally that is not high,” Weeks said. “When our parents were out there they were at about 12%. The only reason these rates look higher in my opinion is because of what we’ve been dealing with the last two years.”  

Research from the Greater Rochester Association of Realtors and Redfin still labels the city and surrounding Monroe County a competitive housing market. But as demand slows in the Fall, buyers can sneak in for deals.  

“Still be aggressive in this market out there because some people will drop out,” Weeks stated. “So I think that’s going to give them more opportunity. People got to also be really cognizant about what their taxes are because that’s going to impact their mortgage payments more than anything else.”  

Although interest rates in mortgages are resembling what they were before the housing market crash, Real Estate Agent Brandon Weeks emphasized to us more regulations are in place now to prevent reckless loan handouts to keep the economy afloat.  

By 2023, Some economic experts predict the Federal Reserve could increase interest rates up to 4.6%.