Interest Rates

The cost of goods and services have been on the steady increase. St. Cloud State University Economist King Banaian joined me on WJON. He says wages are catching up with inflation but that also carries consequences. Banaian believes if wages go up too much it will cause interest rates to stay higher for longer because the Federal Reserve will feel like inflation hasn't made enough progress and they won't cut rates.

The interest rates nationally have been on a steady increase and the St. Cloud area housing market is feeling the affects. Craig Ehrlichman from Premier Real Estate Services joined me on WJON.

The rise in interest rates has slowed home sales in the St. Cloud area. That according to Craig Erlichman from Premier Real Estate Services in St. Cloud. He explains the rise in interest rates from as low at 2% to near 7% on a 30 year fixed mortgage has created what he calls a "correction" to the market.