Interest Rates Could Make 2013 A Good Year For Borrowers But Not For Savers
Consumers who may want to refinance or buy a car should pay attention to experts' interest rate forecasts for 2013. NY1's Shazia Khan filed the following report.
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2012 was a good year for borrowers, but not so for savers, and experts say the 2013 interest rate forecast is not much different.
"So people who are putting money in CDs or in money market accounts, you are just not going to be seeing very good rates. They are kind of laughable, actually," says Janna Herron, an analyst at Bankrate.com.
The good news is that interest rates on consumer loans remain low and attractive for those who have good credit.
"Last year it seemed that every single week we saw a new low when it came to the 30-year fixed. This year, they're still going to be very low, so don't think that you missed out if you didn't buy or refinance in 2012," Herron says. "2013 is still going to have really, really attractive rates."
Rates on home equity lines of credit are also low, and Herron expects these rates to drop even further this year.
"That's because we're starting to see housing prices stabilize and rebound and so people are going to have a little more home equity in their homes, so lenders are going to compete for your business," Herron says.
For those who are in the market for a car, Herron predicts rates on auto loans could revisit some lows that we saw last year.
Credit card rates could depend on one's credit score.
"They are not enjoying historic lows like all these rest of these rates have been. They're staying right around 14.5 percent and that's a little bit higher than it was at the beginning of 2012 and we're going to see they may inch higher as well," Herron says. "Credit card rates are really dependent on your credit as well. If you have really good credit, you can get interest rates on credit cards that are in the single digits."