BIRMINGHAM, Ala. (WIAT) — The Federal Reserve is stepping up its effort to stop inflation by increasing the interest rate by 0.75%, the biggest spike in almost 30 years.

A high-interest rate will make it more expensive to borrow. People will see higher interest cost for mortgages, home equity lines of credit, credit cards, student debt, and car loans. Should you be worried?

Kevin Hagler with Southwest Funding said the main factors to surviving are affordability and sustainability.

“We’re going to have to reestablish our budget because food is more expensive, gas is more expensive, so it’s going to have a negative impact on affordability,” Hagler said. “Demand is still strong, and there are still people who want to own property.”

Hagler said if you have properly budgeted and saved, now is a good time to buy a home.

“There’s always going to be ups and downs in the market,” Hagler said. “History always repeats itself, so who’s to say the home price, the home value may not fall 10% three years from now that’s true, but that does nothing for you today.”

The White House says it has confidence in the Federal Reserve to tackle inflation.

Inflation is above 8% year over year, and the fed’s target is 2%.