Anyone worried about more interest rate hikes got good news on Friday, when the U.S. Department of Labor reported its Producer Price Index was unchanged during May.
This led some economic forecasters to believe the Federal Reserve will not raise interest rates later this month.
In the RV industry, higher interest rates, so far, have not had a major impact on retail sales or the ability of dealers to obtain inventory financing, according to several sources.
However, there is concern within the RV industry about additional rate hikes slowing the economy to the point that sales decline. Currently, “most (RV dealers) are very pleased with sales, although few are satisfied,” said Mike Molino, president of the Recreational Vehicle Dealers Association (RVDA).
Now, the benchmark prime interest is at 9.5%, the highest it has been in at least eight years. To put that in perspective, the only times since 1992 when the prime was at 9% or above occurred during a six-month period in 1995 and earlier this year, when the prime climbed to 9% in late March.