Housing Market Shows Resilience Amid Fed Rate Hikes

The Federal Reserve is expected to raise interest rates for the first time since 2023 due to strong hiring and persistent inflation, driven partly by rising energy prices. Current mortgage rates have hit a 15-month high, contributing to a decline in home sales and pending transactions. Higher rates may dampen consumer confidence and slow housing market activity, particularly affecting first-time buyers and the middle class, while luxury markets remain less impacted.