Fed Hikes Rates: How does this Affect the Housing Market?
This fed rake hike is the largest in over 20 years, and not likely to be the last. Mortgage interest rates have already climbed over 2% in the last couple months and it is likely to climb through the rest of the year into early 2023. Current predicted fed policy is to keep interest rates high and then start reducing interest rates in early 2023 to keep the economy out of recession. Its possible the fed could lower interest rates or other measures like quantitative easing if the economy goes into a recession.
The housing market is affected by interest rate increases, as less people can qualify to purchase a home.