The Federal Reserve has been hiking interest rates aggressively to tame the surging inflation. It has implemented three rate hikes this year, with many more in the offing as inflation continues to make new highs. The real estate sector has been badly affected due to falling home sales amid a lack of listings, rising mortgage rates, high home prices, inflation, and a chaotic economy.
According to the latest report from mortgage finance giant Freddie Mac, the average rate on a 30-year fixed mortgage rose to 5.51% earlier this week, up from 5.30% a week ago. This increase in mortgage rate could put further pressure on mortgage demand, affecting the real estate sector.
