TAMPA, Fla. (WFLA) — The Federal Reserve raised interest rates by 75 basis points on Wednesday, marking the highest rate levels since 2018. The rate impacts many consumer and business loans.
“Interest rates for mortgage rates have gotten better every day since June 14th. We knew this was coming,” Tom Blattau, Regional Manager of Celebrity Home Loans, said.
While inflation has forced prices higher on goods used in new construction, Blattau said the mortgage market has adjusted to rate hikes, meaning it’s slightly more affordable to buy a home than it was last month.
“We don’t have builders that are building affordable homes right now. If you have the opportunity and can, I would always recommend it. I don’t think it’s going to get more affordable,” he said.
The fed is walking a thin line of attempting to cut down on record high inflation while also avoiding a recession. Fed Chairman Jerome Powell signaled that more rate hikes are possible later this year.
“Our overarching focus is using our tools to bring demand into better balance with supply, in order to bring inflation back down to our two percent goal,” Powell said.
For prospective homebuyers, the market is still hindered by high prices and low supply. While the rate hike could make it easier to buy a home, finding one to buy is still a challenge in many cities.