Page 12 - June 2022 Issue.indd

increased the Fed Funds rate .75% and
the Prime rate has moved from 3.25% to
4%, although not all banks have moved
the rate .50% from the last Fed funds
increase in April.
Because you deserve qqualified, llocal representation By far the largest type of loan that is
when managing life’s important issues. impacted by the prime rate is home
equity lines of credit (helocs). These
? ESTATE PLANNING are purposely written as variable rates
? RESIDENTIAL & COMMERCIAL 300 Market Street adjusted against the prime rate and
will have the most signifi cant impact
Suite 104
REAL ESTATE AND SETTLEMENTS Denton, Maryland on American consumers. Those
? LLC FORMATION & BUSINESS LAW 21629 with Helocs will undoubtedly notice
? MUNICIPAL & ENVIRONMENTAL LAW increases in their rates in the next
? GENERAL LEGAL COUNSEL 410.310.1774 month, if they haven’t already.

Our attorney, Patrick Thomas, and our Settlement shayman@mlg-lawyers.com So, until inflation moderates from its

Agent, Sandy Hayman, are available to travel to your www.mlg-lawyers.com current level of over 8% back to a more
preferred location. reasonable level of perhaps 5-6%, the
Fed is positioned to continue increasing
rates it can control. And as the rate on
Dave’s David Grinavic, the 10-year treasury bill continues to go

Riverside ASE Master Technician up so will interest rates.
32600 Main St.
Although the monthly costs are higher
Garage, Inc. Queen Anne, MD 21657 because of interest rates so are prices
410-364-9336
being paid for rent. If you have to live
COMPLETE AUTO REPAIR & MAINTENANCE somewhere, and you have the option of
buying instead of renting, buying still is
• Computerized Engine Diagnostics Oil & Filter Change the best decision for building long term
• Performance Tune-Ups up to 5 quarts of oil (most cars) wealth. You just must be prepared to live
• Front End Alignments
• Brakes • Shocks • Electrical Repairs $ 25 95 in the home you buy for a period of 7-10
• Battery Replacements • Mufflers + tax years to give time for equity to build due
• Tires (Rotate and Balance) to reduction in your loan balance and be
• A/C Service • Exhaust Systems MD State aware that when rates do go back down
$
• Lock-Out & Jump-Start Service Inspections 70 below the rate you are paying you can
• And more!!! always refi nance.
of their existing home will elect to stay Reserve is not able to aff ect several of What goes up will eventually come
put. Having a low interest rate on their these factors. down when it comes to interest rates.
existing mortgage anchors them where And real estate values have a higher
they are, not willing to pay a 5.5% rate The Fed can only impact short term probability of remaining at current
when they are paying 3%, or even lower. interest rates such as the Federal Funds levels or going up than they do coming
Rate, which is the rate banks charge to down from this point forward.

The other variable is interest rates, and lend to other banks overnight. And the
they will probably increase some more Federal Discount Rate which is what Time will tell if what I am predicting
with some economists predicting we the Federal Reserve charges banks to comes true.
could see 6% before they stabilize and borrow reserves, also short term. But
Mr. Rowe is Vice President/Lending for
reach a plateau. It will be a plateau and by the Federal Reserve raising either of
Bay Capital Mortgage Corp. with offi ces
not a peak in that they will remain at these or both, it is impacting the Prime
in Easton and Annapolis. He has lived in
or near the highest level for a sustained Rate.
Caroline for his entire life and supports
period before dropping.
Prime Rate is the rate of interest that the county by volunteering in a variety of
ways. He currently lives near Greensboro

Everything affecting monetary policy, banks charge to their most creditworthy
with his wife Jeanne and daughter Kelsey.
and interest rates is inflation. Our borrowers and will usually rise or fall at
economy is wrestling with several the same rate as the Fed Discount or Fed
inflationary factors, and the Federal Funds rate. So far in 2022 the fed has
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