How the Fed's escalating fight against inflation is hitting the hot housing market

How the Fed's escalating fight against inflation is hitting the hot housing market

Jul 23, 2022 by CNBC

Key Facts

  • The Covid-19 pandemic caused chaos in the U.S. housing market, with prices skyrocketing, inventories dwindling and intense bidding wars.
  • A side effect of raising interest rates, though, is higher mortgage rates.
  • What’s more, the Fed now owns $2.7 trillion of mortgage bonds, part of its plan to prop up the financial system when Covid first started.
  • Watch the video above to find out more about how the Fed’s interest rate tools affect the housing market, and how the Fed plans to unload the trillions of dollars worth of mortgage debt on its balance sheet.

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