(WBAP/KLIF) — With the Federal Reserve’s 10th consecutive rate hike, experts predict a further cooling to the housing market.
The Fed, Wednesday, raised the interest rate a quarter of a percentage point to 5%. Bankrate Chief Financial Analyst Greg McBride says the 5% increase since last year makes buying a home even more expensive. He says mortgage rates currently at 6.5% will go up and the Fed’s move comes as inflation hit 5% year over year in March.
With the 0.25 interest rate hike, experts warning of a recession on the horizon. The rise in the base interest rate pushes it up to 5%, which McBride says may indicate tough times ahead. Market watchers wonder how far the fed will raise rates and how deep of a recession may come.
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