Say goodbye to record-low interest rates - 2005-03-29
Seven interest rate hikes are now history, with the fed funds rate currently up to 2.75 percent from the 40-year lows of 1%. So what are all these quarter-point interest rate moves adding up to? And more importantly, what significance might the rate moves made since last summer have in the coming months and years?
The largest impact is felt by households with adjustable-rate mortgages. A one-year ARM for $200,000 that adjusts by 2 percentage points sees the monthly payment increase by approximately $230.
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