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In his press conference, Fed Chair Jerome Powell briefly addressed the housing market by stating, “Activity in the housing sector remains weak, largely reflecting higher mortgage rates. Higher interest rates and slower output growth also appear to be weighing on business fixed investment.”
Looking at the graph, you can see how the average median price for single family homes have started to increase rapidly and inventory decreasing.
The decision by the Fed to raise interest rates indicates its view that the economy is performing well and inflation is at a manageable level.
The cost of borrowing money will increase, which could potentially impact the growth of the economy and financial markets in the future.
It still remains a strong sellers market during this spring season.
With low inventory, there is competition among buyers who are still on the search - especially for median priced homes.
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