Interest Rates in 2026: No Relief Coming [E243]

Thanks to our partners Promotive, WickedFile, and OverdryveThought interest rates had peaked? So did most of the country. So what happens when a customer needs a $10,000 repair, owns a home with hundreds of thousands in equity, and still can't pay?Hunt Demarest, CPA with Paar Melis &amp; Associates, returns to interest rates for the first time in over a year. He explains the Federal Reserve's quarter-point hike and why the relief expected in 2026 keeps slipping away. The Fed rate sits under every credit card, car note and mortgage your customers carry. Hunt shows why one good inflation report proves little when it's measured a new way, and how the K-shaped economy pays savers 4.5% while borrowers sink. He also says today's stock market looks like a shop that lives off three AI customers.Then he looks at what this means for your customers. The 30-year mortgage is near 7.5%, up from 6.5% a year ago. Customers holding 3% mortgages can't or won't borrow against their homes to cover a big repair. Commercial loans written near 3% in 2021 are resetting around 9%, and some landlords locked into 10-year leases are telling their banks to take the building. Hunt explains why shops that own their buildings are better protected, why rising costs justify raising your prices, and why savers have rarely had it better.Whether you're carrying a variable-rate loan, facing a commercial refinance, or watching customers turn down big repairs, this episode explains what's driving rates and how long they may stay high.What You'll Learn…00:00 Intro02:17 Why the Fed rate sets yours05:07 0% vs. 30% on the same truck06:43 The inflation report that changed the math09:00 The K-shaped economy10:13 A stock market riding on three companies12:14 Why 2026 didn't go to plan16:37 The quarter-point hike and what's next19:26 What high rates mean for your customers21:04 Home equity customers can't touch23:31 Commercial loans: 3% to 9%25:29 Why landlords are handing back the keysIf you're ready to stop waiting for rates to fall and start planning your pricing, your debt and your cash around the rates we have now, this episode is essential listening.Thanks to our partner, PromotivePromotive has over 40 years of recruiting and automotive experience. If you need qualified technicians and service advisors and want to offload the heavy lifting, visit https://gopromotive.com/Thanks to our partner, WickedFileTurn chaos into clarity with WickedFile, the AI for auto repair shops. Transform invoices into insights, protect cash flow, and stop losing parts, cores, or credits to maximize your bottom line. visit https://info.wickedfile.com/Thanks to our partner, OverdryveOverdryve is your AI-powered marketing operating system. It predicts slow weeks before they happen, automatically launches revenue-driving campaigns, tracks ROI down to the dollar, and optimizes performance in real time. Demo the Marketing Intelligence Platform at https://getoverdryve.ai/Paar Melis and Associates – Accountants Specializing in Automotive RepairVisit us Online: www.paarmelis.comEmail Hunt: podcast@paarmelis.comGet the FREE 2026 Auto Shop Benchmark Report: https://hubs.ly/Q04j-grh0Download a Copy of My Books Here:Beyond the Bays: A Financial Playbook for Auto Repair Shop OwnersWrenches to Write-OffsYour Perfect Shop <a href="https://automo