Rochester Consumers Face Higher Borrowing Costs as Interest Rates Rise

The Federal Reserve's recent decision to raise interest rates is putting additional pressure on consumers in Rochester and beyond.

Last week, the Fed increased its benchmark interest rate by a quarter percentage point to 3.75%-4%, marking its first hike since 2023.

Financial adviser Jesse Cramer of Rialto Wealth notes that borrowing costs for consumers, including mortgages, auto loans, and credit cards, are likely to rise as a result.

Cramer warns against trying to time major purchases around future interest rate moves, which can be challenging. 'If you need a loan, unfortunately, this probably isn't what you wanted to see happen,' he says.

Average interest rates for new-car loans are at 6.35% and used-car loans at 11.19%, according to Experian's second-quarter data.