Fed raises interest rates for the sixth time: how will it affect the NEO housing market?

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“History tends to repeat itself, but the housing market’s explosion out of the pandemic was like nothing we’ve ever seen before. ”

CLEVELAND — The Federal Reserve raised interest rates for the sixth time this year. It’s all in an effort to curb inflation, but this makes interest payments on things like buying a house, credit card debt and cars much higher.

History tends to repeat itself, but the housing market’s explosion out of the pandemic was like nothing we’ve ever seen before. “I would say a little after COVID hit and then probably the two years post-COVID, we were pretty, pretty spoiled in the industry,” he said.“Every single house that hit the market would sell within a day or 2 and overusing,” she said.“In my career I’ve never seen a strong change in the market for the first half of the year to the second half of the year,” said Carr.

But people still are buying, many lowering their price points trying to counteract the higher rates, so mortgage payments don’t break the bank. He also suggests if you are looking to buy, to refinance when rates drop.

 

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