What the Fed's Rate Hike Means for Housing

A higher fed funds rate today is the medicine the housing market needs to recover tomorrow. Greater market confidence in inflation being under control is more likely to bring mortgage rates lower in 2027 and get the recovery back on track. Unfortunately, it's going to be a challenged end of the year for home sales before we get there. The recent run-up in rates is hitting an already slow housing market, where sales volume has started to decline year over year from an already low baseline.