MarketMinute | Will the housing market grow despite climbing rates?
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Multiple Fed members have come out supporting policy rate increases to curb inflation, beginning as early as March. |
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Although the Fed doesn't set mortgage rates, expectations of upcoming Fed policy rate hikes pushed mortgage rates higher this week. |
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Both consumer and wholesale inflation continue to be a problem. Consumer inflation rose 7% in December, its biggest gain since 1982. |
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Purchase mortgage applications rose 2% last week compared with the previous week, as higher mortgage rates have homebuyers nervous. |
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Refinance apps were 50% lower year-over-year and the lowest level in 3 months, but they were down only 0.1% from the prior week. |
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Despite rising rates, the housing market is expected to remain competitive this year. Sales are expected to grow 6.6% to a 16-year high. |
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