The Fed Raises Rate, Where Does That Leave Real Estate | Housing Market 2022

Well, the Fed raised the rate by .50 and what does that mean for real estate. The good thing is that the rate won't be affected much when it comes to the mortgage rate. That has already been adjusted for the most part. The mortgage market is already pricing in the fact that the Fed will continue to raise the rate. This means that if there are no other surprises this year we should be around the low 6% by the end of the year,

Let's also take a look at the newest Redfin Article that popped up. It's all about migration and inflation. Goes hand in hand with the Fed raising the rate.

The article that shows how rising rates affect our economy in 2022:

https://www.cnbc.com/2022/05/04/heres-what-the-feds-half-point-rate-hike-means-for-your-money.html

Lawrence Yun, Chief Economist of NAR had a great quote here about the mortgage rates in 2022.

https://buffalonews.com/lifestyles/home-and-garden/real-estate/why-the-fed-wants-home-buyers-to-face-higher-mortgage-rates/article_f0ae2acc-8662-50d2-af64-527604e8aeb0.html

The Redfin Article showing migration patterns and inflation are tied together in some areas for 2022.

https://www.redfin.com/news/migration-inflation-analysis-q1-2022/

Some popular questions about Real Estate in 2022

The Real Estate Market is going to crash? No

What does the research say about the housing market? It's not going to crash

Will inflation affect the real estate market? Yes, it will, but as long as interest rates remain lower it will not crash the market.

Is it a good time to buy real estate? Yes, don't base your purchasing on fear, if you need to buy go ahead and buy a home and do your homework. Home prices still rise in cycles and real estate has always been a long-term play. It's no different with real estate in 2022.

Is it a good time to sell a home in real estate? Yes, some economists indicate that this year will be the height of the market for home prices.

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