“Always do right. This will gratify some people and astonish the rest.”
Lisa Kiplinger, USA TODAY6:11 a.m. MST September 19, 2016
Will they, or won’t they? That’s the question on the minds of interest-rate watchers everywhere as the Federal Reserve gets set to meet this week. National Association of Federal Credit Unions President and CEO B. Dan Berger weighs in with what savers and borrowers can expect over the long haul.
Q: Interest rates have been so low for so long, and even when they do rise, it’ll be extremely gradual. What’s a saver to do?
A: This has been a tough environment for savers. It really emphasizes the need to shop for the best rates possible. Oftentimes, that will be a credit union — a not-for-profit, member-owned financial cooperative. Savers can go to www.CULookup.comto find interest rate comparisons between credit unions and banks, and also to find a credit union that they are eligible to join.
National Association of Federal Credit Unions President and CEO B. Dan Berger. (Photo: Karen Sayre)
Q: Have the low rates been hard on credit unions and banks as well?
A: Yes. Credit unions exist to serve their members and do so by offering the best rates possible. That has been difficult in the current interest-rate environment. Nevertheless, nearly 105 million Americans are members of credit unions, and their ranks are growing every day as more and more people see the value and superior service offered by credit unions.
Q: How quickly do you expect rates on savings accounts to go up when the Fed finally acts?
A: It is likely to be a slow process.
Q: Why the lag time?
A: The first thing to remember is that we’re only talking about one-quarter of 1%. Using recent experience as a guide, there was hardly any impact on savings rates last December when the Fed raised rates. Secondly, the Fed has been extremely slow to raise interest rates. Depository institutions will likewise incorporate those interest rate adjustments into their savings products at a very gradual pace. Another issue is that there is a lot of liquidity in the financial sector at the moment. As that starts to ease we can expect increased competition for retail savings, and with increased competition comes better rates for savers.
Q: What can borrowers expect as rates start rising and how should they react?
A: It depends on the borrower. Generally speaking, borrowers of shorter-term credit, such as credit cards, will see the greatest immediate impact from a Fed rate hike. Longer-term rates will not be impacted as quickly. A rate hike is not likely to have much of an impact on mortgage rates, for example. So for borrowers, the old adage of paying off those borrowings with the highest interest rates first becomes even more important.
Q: What’s the biggest misconception about credit unions?
A: Many people recognize that credit unions offer outstanding service, competitive rates and low fees, but many are not aware of how convenient credit unions are. Credit unions offer many of the bells and whistles of other financial institutions, including online banking. At most credit unions, you can open an account for as little as $5, and the majority still offer no-fee checking.
Phoenix Commercial Real Estate and Investment Real Estate: investors and Owner / Users need to really know the market today before making a move in Commercial Properties or Investment Properties in Phoenix / Tucson / Arizona, as the market has a lot of moving parts today. What is going on socio-economically, what is going on demographically, what is going on with location, with competing businesses, with public policy in general — all of these things affect the quality of selling or purchasing your Commercial Properties, Commercial Investment Properties and Commercial and large tracts of Residential Land in Phoenix / Tucson / Arizona. Therefore, you need a broker, a CCIM (Certified Commercial Investment Member) who is a recognized expert in the commercial and investment real estate industry and who understands Commercial Properties and Investment Properties.
I am marketing my listings on Costar, Loop-net CCIM, Kasten Long Commercial Group. I also sold hundreds millions of dollars’ worth of Investment Properties / Owner User Properties in Retail, Office Industrial, Multi-family and Land in Arizona and therefore I am working with brokers, Investors and Developers. I am also a CCIM and through this origination ( www.ccim.com ) I have access to marketing not only in the United States, but also international. Click here to find out what is a CCIM: https://en.wikipedia.org/wiki/CCIM
Feel free to contact Walter regarding any of these stories, the current market, distressed commercial real estate opportunities and needs, your property or your Investment Needs for Comercial Properties in Phoenix, Tucson, Arizona.
Kasten Long Commercial Group tracks all advertised apartment communities, including those advertised by other brokerages. The interactive map shows the location of each community (10+ units) and each location is color coded by the size (number of total units).
Walter Unger CCIM, CCSS, CCLS
I am a successful Commercial / Investment Real Estate Broker in Arizona now for 20 years. If you have any questions about Commercial / Investment Properties in Phoenix or Commercial / Investment Properties in Arizona, I will gladly sit down with you and share my expertise and my professional opinion with you. I am also in this to make money therefore it will be a win-win situation for all of us.
Please reply by e-mail firstname.lastname@example.org or call me on my cell 520-975-5207
Walter Unger CCIM
Senior Associate Broker
Kasten Long Commercial Group
2821 E. Camelback Rd. Suite 600
Phoenix , AZ 85016
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