Auto sales remain strong despite the Federal Reserve announcement to increase the interest rate a quarter of a percentage point. This move will raise short term borrowing costs for banks. This can require bank lenders to boost their interest rates.
Lending research calculates that for a 25,000.00, five year car loan, a one quarter percentage point increase would raise monthly payments by 3 dollars. This would translate to an additional 36 dollars per year in the household budget.
Cars continue to sell in record numbers, and the lower gas prices may be helping.
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