Interest rate increase could cause big impact in housing market
LYNCHBURG, Va. (WFXR) — The Federal Reserve moved up its timeline for interest rates as inflation continues to rise in the U.S. Officials say rates could increase as soon as 2023.
This comes during the biggest spike in consumer prices in about 13 years.
The federal government tries to keep inflation around two percent. The rate of inflation this year is five percent. Economists say it will cost more to take out loans and will have a huge impact on the housing market.
Realtor Luther Maddy says, “There’s a lot of buyers out there looking and just not a lot of houses to be sold.”
He says in March, there were 260 homes actively on the market within Lynchburg and surrounding counties. Although that number crept up to a little more than 300 over the past few weeks,…