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.

Interest rates have been on the rise throughout the nation and that includes the St. Cloud area real estate market. Craig Ehrlichman from Premier Real Estate Services joined me on WJON. He says the average sale price in the market is at $285,000, closed sales are up 14.1%, and new listings on the market are up with about 98 properties current on the market.

Interest rates are going up, so here's where you'll feel the squeeze...