How the Fed's escalating fight against inflation is hitting the hot housing market
How the Fed's escalating fight against inflation is hitting the hot housing market
Abstract
The Covid-19 pandemic caused chaos in the U.S. housing market, with prices skyrocketing, inventories dwindling and intense bidding wars. Then came record inflation, which drove the price of everything higher. The U.S. Federal Reserve is waging an intense fight against rising prices, using interest rates as its primary weapon. A side effect of raising interest rates is higher mortgage rates. What's more, the Fed now owns $2.7 trillion of mortgage bonds, part of its plan to prop up the financial system when Covid first started.
You can contact us to get more choices