TAMPA, Fla. – University of Tampa Associate Professor of Economics Thomas Stockwell said the federal reserve raising interest rates by 0.5% on Wednesday will not be enough to cool down inflation, but it's a step in the right direction.

"This half percentage point probably is not going to make that big of a deal for inflation," said Prof. Stockwell. "Which means we're going to have to continue to raise the federal funds rate going forward." ​

What You Need To Know

  • Rate is expected to rise again by 0.5% in June

  • Professor expects a total rate increase of approximately 3 percent by end of the year

  • Wednesday's rate hike not expected to cool Florida's housing and car markets

Stockwell said he expects the fed to raise rates by another 0.5% in June. The rate will likely be raised by a total of approximately three percent by the end of this year, according to Stockwell.

"This is going to be a long bumpy ride," he said. "I would just say buckle up and be ready for it." 

The rate hike affects the price consumers pay for loans on cars, homes, credit cards and higher education. Stickwell said the price of homes and cars in Florida will likely continue to climb due to low supply despite interest rate hikes.

ABOVE: Watch the story by Spectrum Bay News 9 reporter Josh Rojas

"The federal reserve lowering interest rates does nothing to address the supply side problems that exist in the housing market and the automobile market," he said. "There's just not enough houses for people who want to buy houses." 

Elijah Dickhaus is currently in the process of buying a four bedroom, 1,500 square foot home in the Belmont Heights neighborhood in Tampa. The home is selling for $389,000. 

Elijah Dickhaus in front of the Tampa home he’s currently in the process of buying. (Spectrum News/Josh Rojas)

Dickhaus said since he began looking at homes to buy less than two months ago, the bank has risen his interest loan rate by one percent. 

"I first started looking about a month and a half, maybe two months ago and I was approved at a rate of four percent," he said. "But by the time I found this one, just about a week ago or two, the interest rate had already risen up to five percent." ​

Dickhaus is scheduled to close on the home next week and said he's looking forward to moving from his apartment. The small business owner said the rates would have to go up a few more times before he's priced out of the market.

"Personally, I'd start to get hesitant around six percent," said Dickhaus. "Definitely would be out by seven."

Stockwell said he expects inflation to stick around for a while.

"There are a lot of other factors involved that are going to keep that upward pressure on prices," he said. "For the near future, probably for the next couple of years."