The Fed’s New Interest Rate Hike Explained

The Fed (Federal Reserve) just raised interest rates for the first time in years. What does this mean for the housing market as a whole, and what about individual real estate investors? Are we looking down the barrel of a high-interest rate future, or is this only a temporary measure to curb inflation? And what about homebuyers who are still looking on the market for housing inventory?

All this, and the data to back it up, will be explained by Dave Meyer on today’s episode. Dave (and most other investors) has been speculating for a while that the Federal Reserve would start to raise rates, but now we have a bit more context behind the decision. The rate hikes will impact bond yields, which by default will impact mortgage rates, which of course will be passed down to you, the homebuyer, as your final amount of interest.

So what happens next? Are we in store for a wildly-high interest rise? And if so, does real estate investing become less lucrative for everyday investors? Watch on to find out!

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Check out Last Week’s Episode on Why Rentals Remain Bulletproof In Uncertain Times:

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Graphs and Charts Mentioned in This Video:

FOMC:

FRED:

FRED Mortgage Rates:

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Will Rising Interest Rates Tank the Housing

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How Do Interest Rates Really Affect Your Investments? A Deep Dive:

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Fed Signals a Dramatic Shift in Policy—With Big Changes Coming for Interest Rates:

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Connect with Dave on BiggerPockets:

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@thedatadeli or

0:00 Interest Rates are Rising!

01:04 Why Raise Rates?

02:50 How This Affects Homebuyers

04:07 What Did the Fed Decide?

06:25 Where Will Mortgage Rates Go Next?

08:21 What Happens Now in The Housing Market?

Recommended Reading >> bit.ly/32kRpzw

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