The Fed rate and house values are going up again!
Today starts the Fed’s 2-day meeting. Expect the Fed to increase rates by ¾ of one point on Wednesday afternoon (July 27, 2022) at their 2pm press conference.
I expect they will continue raising rates until inflation slows down. Once that happens, you can expect rates to go downward again a little. However, I doubt they will ever get back into the low 3% range that we saw until March of 2022.
In other housing news, the Case-Shiller Home Price Index showed home prices rose 1.5% in the month of May and 19.7% year over year. That is a slight decline from 20.6% in April but it shows that owning a home is still the best choice right now rather than waiting.
The Federal Housing Finance Agency (FHFA) also released their House Price Index which measures appreciation based on conforming loan amounts. According to that, prices rose 1.4% in May and are up 18.3% year over year.
Expect these numbers to become more moderate in the coming months as the full impact of higher rates has not completely set in.