Fed delivers 25 BPS rate hike, what’s next?

You may have heard the Federal Reserve announced another rate hike this week. Here’s what that means for the housing market ⬇️

This week’s rate hike was much smaller than those in the past. Last year we saw 75 basis point (BPS) increases, in June, July, September & November, and a 50 BPS increase in December.

After announcing the 25 BPS hike Fed chairman, Jerome Powell, said rate hikes will likely pause and possibly go down in the future.

We immediately saw mortgage rates drop after this announcement. We’re currently seeing rates in the mid to low 5’s in the Des Moines metro area.