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Tuesday, November 22, 2022

How The Fed’s High-Stakes Inflation Fight Hit The Hot Housing Market

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The Covid-19 pandemic induced chaos within the U.S. housing market, with costs skyrocketing, inventories dwindling and intense bidding wars.

Then got here report inflation, which drove the value of all the things greater.

The U.S. Federal Reserve, although, is waging an intense struggle towards rising costs, utilizing rates of interest as its main weapon.

A aspect impact of elevating rates of interest, although, is greater mortgage charges.

What’s extra, the Fed now owns $2.7 trillion of mortgage bonds, a part of its plan to prop up the monetary system when Covid first began. And it started promoting them in June.

So what does the Fed’s struggle towards inflation imply for the red-hot housing market? Watch the video above to search out out extra about how the Fed’s rate of interest instruments have an effect on the housing market, and the way the Fed plans to unload the trillions of {dollars} value of mortgage debt on its stability sheet.

Sat, 23 Jul 2022 14:00:12 GMT

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