The Federal Reserve’s move to combat inflation by increasing short-term interest rates is deterring buyers from entering the real estate market, according to a South Florida mortgage lender, who discussed how the next few months could play out for buyers and investors.
The Fed announced the 0.25% increase in short-term interest rates in March—the first hike since 2019—and the average rate on a 30-year fixed mortgage is around 5.15%, according to Mortgage News Daily.