Home sales have slumped all over the nation, and blame is being placed squarely on interest rates.
Real estate agents and lenders are not the only ones affected by rising interest rates. Many young home buyers have opted for variable rate mortgages, betting that their incomes would increase before the interest rates on their homes. Rising rates will put many young families at risk of losing their homes. The Federal Reserve controls the amount of currency in circulation by raising and lowering interest rates. When interest rates are low, business and consumer demand for loans increases, and banks “create” new electronic money by making loans.
If home sales were the only consideration, the Fed would not have raised interest rates this far, this fast.
Home Interest Rates
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