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The Fed's interest rate hike is already reducing demand for mortgages

Apr 7, 2022
Getting demand to soften is the point because that's expected to help tame inflation.
Applications for home mortgages and loan refinancings are slowing down. Will inflation follow the trend?
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The Fed will sell some of the bonds it's been buying in an effort to cool the economy

Apr 6, 2022
Selling the Treasury and mortgage-back bonds on its balance sheet helps the central bank raise interest rates.
According to its March meeting minutes, the Federal Reserve will start selling $95 billion worth of bonds per month.
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Another cure for inflation? Making markets more competitive.

Apr 1, 2022
Companies facing few competitors can hike prices more easily than those in competitive markets.
"I like to say that we're not doing something new, we're doing something that people have done for thousands of years, which is use everything that's grown and not throw it out," says Anna Hammond, founder of Matriark Foods.
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Higher mortgage rates could make the housing supply problem worse

Apr 1, 2022
Homebuilders already face higher prices for materials. More expensive loans could affect construction for years.
The Federal Reserve's interest rate policy is upping the cost of home construction and could constrict future inventory.
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Can the Federal Reserve squeeze out inflation without squashing growth?

Mar 21, 2022
Bringing the economy in for a "soft landing" — taming inflation without bringing on a recession — has proven difficult for the Fed in the past.
The Federal Reserve isn't always successful at taming inflation while avoiding a recession. Plus, the pandemic and war in Ukraine make the Fed’s job more difficult.
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What does the existing home market look like, especially with mortgage rates rising?

Mar 18, 2022
The housing market for homes that have been occupied before is already tight and may become even more competitive.
Housing strategist Majora Carter says that the trend is especially pronounced in low-income neighborhoods, where private equity firms and other companies use all-cash deals to rapidly snap up housing.
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Is a recession in the cards?

Mar 17, 2022
Fed chief Powell called the risk of a recession “not particularly elevated." But some economists think he’s overly optimistic.
Economists' views on the likelihood of a recession are mixed while the Federal Reserve tries to navigate a challenging economic and geopolitical environment.   
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Federal Reserve lifts interest rates a quarter point

Mar 16, 2022
Citing high inflation and the tight labor market, Fed Chair Jerome Powell announces the first rate hike since 2018.
Powell: The Fed is "committed to bringing inflation back down and also sustaining the economic expansion.”
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Fed announces interest rate hike to combat inflation

Mar 16, 2022
With more likely to follow, the rate hikes will eventually mean higher loan rates for many consumers and businesses.
Tom Williams/Pool/AFP via Getty Images

Mortgage rates fall as investors take shelter in bonds

Mar 9, 2022
But analysts say the dip is likely to be temporary.
After easing last week, mortgage rates may not stay down for long with the Federal Reserve set to raise interest rates this month.
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