However, the FOMC predicts that it could continue to rise and peak at around 4.9% in 2023. All Rights Reserved. Therefore, this compensation may impact how, where and in what order products appear within listing categories, except where prohibited by law for our mortgage, home equity and other home lending products. We maintain a firewall between our advertisers and our editorial team. Having seen how the restrictive monetary policy in the early 1980s hurled the nation into a severe recession, its unlikely that the Fed will pursue such a course again and risk destabilizing the economy. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. How To Find The Cheapest Travel Insurance, Best Savings Accounts For Automated Saving, Best Savings Accounts For Digital Banking, Best Savings Accounts For Customer Experience, Fintech Trends Likely To Stick Around After The Pandemic, How To Protect Your Online Banking Information, Fintech Tools To Help You Master Money Mindfulness, Best High-Yield Savings Accounts Of March 2023, Best Online Savings Accounts Of March 2023. Bankrate follows a strict editorial policy, A Red Ventures company. A Red Ventures company. When the Fed raises its benchmark interest rate, all types of financing become more expensive. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. According to Forbes Advisors list of the best online savings accounts, the average APY of the top four highest-yielding savings accounts in December 2022 was 3.28%86% of the most recent national rate cap. In simpler terms, the rate of savings totals $300 per year for every $100,000 on a mortgage. As Hunter explains, the RBA is trying to engineer a soft landing, the elusive Goldilocks outcome. Information provided on Forbes Advisor is for educational purposes only. In 2022, first-time buyers made up 83.52% of FHA purchase loans and 43.75% were low-income borrowers, according to the Department of Housing and Urban Development (HUD). In the past 12 months alone, the Fed has hiked rates seven times to combat rising inflation.