Mortgage rates have jumped, home sales have slumped and credit cards and auto loans have gotten pricier.
Yet as the Federal Reserve has rapidly increased interest rates, many economists say they fear that a recession is inevitable in the coming months — and with it, job losses that could cause hardship for households already hurt worst by inflation.
That said, Hoyt noted that household debt payments, as a proportion of income, remain relatively low, though they have risen lately. So even as borrowing rates steadily rise, many households might not feel a much heavier debt burden immediately. Those who don’t qualify for low-rate credit cards because of weak credit scores are already paying significantly higher interest on their balances, and they'll continue to.
Many lower-income buyers have already been priced out of the new-vehicle market, according to Caldwell. Automakers have been able to get top dollar for their vehicles because demand is high and supply is low. For more than a year, the industry has been grappling with a shortage of computer chips that has slowed factories worldwide.
Asking rents are up 11% from last year, said Daryl Fairweather, an economist with the brokerage Redfin. But price growth has slowed, and some renters are moving to more affordable areas.If you’re financially able to proceed with a home purchase, you’re likely to have more options than at any time in the past year. Sales of both new and existing homes have dropped steadily for months.Cryptocurrencies like bitcoin have dropped in value since the Fed began raising rates.