The Covid-19 pandemic caused chaos in the U.S. housing market, with prices skyrocketing, inventories dwindling and intense bidding wars.
Then came record inflation, which drove the price of everything higher.
The U.S. Federal Reserve, though, is waging an intense fight against rising prices, using interest rates as its primary weapon.
A side effect of raising interest rates, though, is higher mortgage rates.
What’s more, the Fed now owns $2.7 trillion of mortgage bonds, part of its plan to prop up the financial system when Covid first started. And it began selling them in June.
So what does the Fed’s fight against inflation mean for the red-hot housing market? Watch the video above to find out more about how the Fed’s interest rate tools affect the housing market, and how the Fed plans to unload the trillions of dollars worth of mortgage debt on its balance sheet.
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How The Fed’s High-Stakes Inflation Fight Hit The Hot Housing Market
Then came record inflation, which drove the price of everything higher.
The U.S. Federal Reserve, though, is waging an intense fight against rising prices, using interest rates as its primary weapon.
A side effect of raising interest rates, though, is higher mortgage rates.
What’s more, the Fed now owns $2.7 trillion of mortgage bonds, part of its plan to prop up the financial system when Covid first started. And it began selling them in June.
So what does the Fed’s fight against inflation mean for the red-hot housing market? Watch the video above to find out more about how the Fed’s interest rate tools affect the housing market, and how the Fed plans to unload the trillions of dollars worth of mortgage debt on its balance sheet.
» Subscribe to CNBC: https://cnb.cx/SubscribeCNBC
» Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision
About CNBC: From 'Wall Street' to 'Main Street' to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more.
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Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC
Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC
Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC
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How The Fed’s High-Stakes Inflation Fight Hit The Hot Housing Market
