The Fed Doesn’t Expect Rate Hikes Until 2023, but They Could Affect Today’s Housing Market
In a vote of confidence in the nation’s strengthening economy, the majority of the Federal Reserve members now anticipate raising the interest rates twice in 2023. And while this wonky monetary projection may sound like a long way off, it could have a real impact on today’s overheated housing market.
In response to the news, mortgage interest rates could tick up a little in response. This could result in the scorching-hot and ultracompetitive real estate market softening just a touch.
The projections came out of a Federal Open Market Committee meeting held on Tuesday and Wednesday.
“With [housing] prices as high as they are, higher mortgage rates are going to make homes more difficult to afford,” says Realtor.com® Chief Economist Danielle Hale.