CANFIELD, Ohio (WKBN) – Inflation is at 7.9%, the highest it’s been in 40 years.

Now, interest rates are rising, too, but what does that mean?

This week, the Federal Reserve raised interest rates one-quarter of a percent. The last increase was in December of 2018. Some even think interest rates could rise six more times in 2022.

Amid climbing costs of goods, this increase is affecting everyone.

When it comes to cars, supply chain issues are playing a role in the interest rate hike.

“You have chipmakers that are behind and the auto dealers are having a hard time getting new cars out,” said Dan Cvercko, senior vice president of wealth management at Farmers National Bank.

For homeowners, the interest rate hike is also increasing mortgage rates.

“They’re based off of the 10-year Treasury. The 10-year Treasury, which was around 1.5 percent, is now currently over 2 percent. So you’ve been seeing mortgage rates starting to go up,” Cvercko said.

The main reason for this rise in interest rates is to help decrease inflation, but that could take some time.

This does have benefits for savers and investors.

“Are they going to finally start to get rewarded in a certificate of deposit or a savings account? Yes, as rates rise, those will start to benefit,” Mediate said.

“A lot of times, too, markets will actually advance and be positive because of the slowing down of inflation,” said Cvercko.

So how can one adapt to the rising interest rate?

“Be careful what you’re spending for your mortgage rates. Be careful what you’re spending on your home equity line. Just be mindful of and be aware of what you’re doing,” Cvercko said.

“These are things you want to start looking at locking in rates now because, again, they’re only going to get higher as they go,” said Mediate.