(WKYT) - Interest rates have risen three times this year. The federal reserve says we'll likely see another hike this year.
Matt Dicken, a financial expert with Strategic Wealth Designers, says the reason is that the economy is strong and the Fed sees the growth to be one of a few reasons to keep raising rates.
You can even consider the current interest rates as "on sale" because we are about to experience a fourth hike this year, Dicken said.
Next year the Federal Reserve plans an additional two hikes.
This does start to shrink the market. Assume you are in the market for a $300,000 home. Last year at this time, your house payment each month would have been $200 cheaper than it is today, Dicken said. That will only go higher with these expected rate hikes.
The same is true with cars, if you need lending options you are going to feel those rates pulling more out of your pocket each month.
President Donald Trump has expressed frustration with the fed hikes. There are a couple reasons why he doesn't like them, Dicken explained.
Raising interest rates can slow a growing economy and President Trump definitely wants to be out in front saying the economy is growing great.
The other main concern Trump has is the budget deficit. Every time interests rates rise by 1% it will add $500 billion to the deficit. Historically president's have not spoken out against the fed too often, but this is not a status quo president either, Dicken said. The main driving factors are the deficit increase and the cooling of the economy with rate hikes.