The Federal Reserve’s interest rate hikes may be intended to give the housing industry a “reset,” as chair Jerome Powell wanted, but it also may have further confused home buyers and sellers on what to do next.
Average 30-year fixed mortgage interest rates have spiked from 3.2% to 6.38% over the past six months, tightening supply as sellers hang on to those early, historically low rates. But the demand for housing of all types still remains high nationwide.
On Wednesday, Powell said in an effort to cool “a red-hot housing market” to straighten a “big imbalance,” now believes it will likely take a “difficult housing correction,” to fix things.
