MIDWAY, Fla. (WTXL) - From interest rates to the stock market, we all know some financial topics can be tricky to understand.
Stacy Bush with Bush Wealth Management joined us in studio to help us navigate:
1. Should you refinance to a fixed-rate Mortgage?
With rates still relatively low, refinancing to a fixed-rate mortgage could be the right move to lock in a reasonably low rate for the next 15 or 30 years. Current rates are near 4.6% for a 30-year fixed.
2. How long will it take for me to see higher interest rates on my banking and money market accounts?
Unfortunately, it is not as fast as you think. But the good news is that rising interest rates favor savers over borrowers.
3. How do rising interest rates affect bond investments?
Rising interest rates will hurt bonds and other fixed-income investments, but they also eventually will provide healthier interest payments down the road when you put new money to work.
4. How has the stock market previously performed in a rising interest rate environment?
Not all sectors of the stock market are created equally. Some portions get hurt when rates rise. Others actually benefit. Bank stocks, on the other hand, usually react positively to rising interest rates.