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Are Rising Rates Affecting Housing Markets?

Ricky Cove
Are Rising Rates Affecting Housing Markets?

The US Fed has clearly communicated its intentions to continue the rate hike path at the June monetary policy meeting, as the US economy continued to expand. The US Fed hiked interest rates by 25 basis points at that meeting and left the doors open for two more hikes in 2018. Rising interest rates increase the cost of owning a home for prospective buyers, but the impact hasn’t yet been felt by the housing (XHB) markets, as the recent economic data continues to paint a rosy picture for the housing sector.