Interest rates have been rising for the past few years. The Fed has been raising rates throughout its meetings because they want to slow down inflation and curb market bubbles. This is expected to increase the cost of borrowing money for things like mortgages, student loans, and credit cards.

The interest rate hike means a two-fold impact on homebuyers. First, it means that home-buying interest rates will rise, making homes more expensive, which is why the Fed announced that they would increase the discount rate to make up for it. Second, it makes people think twice before buying a house because mortgages are now less attractive to lenders than other investments like stocks or bonds.

The Fed announced it would increase its discount rate from 1% to 1.25%. The discount rate is the interest rate banks pay when they borrow from the Federal Reserve. However, this increase isn’t enough to offset the other interest rates, so that that home lending will become more expensive for banks and consumers. This also means that mortgage interest rates for sellers, who want to sell their houses, will increase, translating into higher housing prices.

Interest rates are rising, home prices are decreasing, and mortgage interest rates are increasing, which makes it more difficult for people to buy homes. This will push housing prices down over the next few years, which means that homeowners will want to sell, and sellers will want to buy because they can afford to buy the homes that they want to buy.