Federal Reserve Interest Hikes Affect House Prices and Mortgage Payments

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By Tom Kowalski

ERIE, Pa. (Erie News Now) – As the Federal Reserve raises interest rates for the sixth time this year, homeowners and those looking for a house are feeling the consequences.

The Reserve is hoping the raised interest rates will help slow down spending, and combat the 40-year-high inflation felt across the nation.

Experts are unsure as to when inflation levels will come back down.

“I guess I should say this is the new normal,” said Paul Gornall, an associate broker at Weichert Realtors. “When is it going to stabilize? I don’t know that I can answer that question. You could probably ask 10 or 15 economists and get 30 different answers, so I just could say this a part of the new normal, and it has been like this for a while, and it’s going to continue.”

According to the Mortgage Bankers Association, applications at their slowest pace since 1997.


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