• The Fed raised policy rates 0.5% this week. The move will increase short term rates like car loans, some home equity loans, and credit card rates.
  • The Fed rate increase does not directly increase mortgage rates though. Mortgage rates moved higher already in anticipation of Fed action.
  • Concerns that intense labor demand could spark further wage increases has investors worried the Fed won't be able to curb inflation.

  • A recent Gallup survey showed just 30% of adults think now is a good time to buy a home, the first time it has been below 50% since 1978.
  • Total mortgage applications were up 2.5% last week. Though purchase applications were down 11% from last year, they were up 4% on the week.
  • 71% of homeowners with upcoming house projects expect to proceed despite anticipated higher costs, delays and materials shortages.