What the Fed's interest rate increase means for homebuyers and mortgages
With the Federal Reserve again raising interest rates, homebuyers face prospects of pricey mortgages well into this year after a rough 2022 for the housing market.
The Federal Reserve is still raising interest rates, meaning homebuyers will still face high mortgage rates after a rough 2022 for the housing market.
The past year has been a rollercoaster ride for homebuyers and sellers alike. In early 2022, homes in Atlanta were getting as many as 32 offers with bids averaging $85,000 over asking price, according to one real estate agent based in the fast-growing city.
“We were getting one, two offers towards the summer,” said Courtney Phillips of EXP Realty.
But by the fall, mortgage rates had more than doubled from the start of the year, as the Fed began raising interest rates to tackle surging inflation.
“And then it just kind of slowed,” Phillips recalled, “where you’re on the market a couple of weeks and you get one really strong offer at list price.” By November and December, she said home sellers were cutting prices.
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