BISMARCK, N.D. - Interest rates are linked to almost every financial transaction we make. Whether it's taking out a mortgage, a car loan or even a credit card. When we make payments on those loans, we pay interest and the amount we pay in interest could be going up.
The Federal Reserve raised interest rates last December from almost zero to a quarter percent, and in 2016 the feds aim was to raise interest rates four times throughout the year. We haven't seen one yet but that could be changing soon.
As the bell rang to open the markets on Thursday, stock indexes increased dramatically as the Nasdaq hit record highs. All on the back of what Janet Yellen, the President of the Federal Reserve said on Wednesday.
"The federal reserve came out and did what we expected them to do, not raise rates for September but it's what they said about the future that's important. They will likely raise rates in December," said Eugene Graner, Heartland Investors.
Financial experts with Capital Credit Union say the last time interest rates went up, Mortgage rates went down.
"With talk of the feds raising interest rates again. I'm sure consumers are nervous but honestly we may see another decrease on the mortgage side," said Scott Bullinger, Capital Credit Union.
Graner says raising interest rates could help the countries overall economy.
"They need to get interest rates back up for the savers to have something and in the future which we are probably already in a recession right now anyway they can lower the rates to stimulate the economy. How do you stimulate the economy when you gas pedal is already full extended," said Graner.
Bullinger says small interest rate changes shouldn't hurt to many people's wallets.
"In this business most people are payment driven versus rate driven so that little increase that we may see will not affect, should not affect a lot of people," said Bullinger.
Graner also says Wall Street will feel the biggest hit compared to the consumer.
The Federal Reserve's initial plan was to raise interest rates a quarter percent every three months for three years, instead experts say we can possibly see interest rates going up three quarters of a percent in three years.