Interest rate changes expected in the not too distant future

Consistently historic low mortgage rates have led to unprecedented demand for home purchasing since the onset of the COVID-19 pandemic. As a result, home prices have been surging. Worries about inflation have finally forced the Federal Open Market Committee (FOMC) to look at taking action, including possibly raising interest rates and reducing its bond-buying program. Officially, though, Fed Chair Jerome Powell said the FOMC is not adjusting bond purchases. He also indicated they are only beginning to discuss the potential for a discussion about cutting back.

The price of new home construction may be normalizing a bit as well. Lumber prices have dropped by more than 40% as high prices finally forced a drop in demand and allowed supply to catch up.Home prices are continuing to increase at a rapid pace. As a result, many homebuyers are forced to confront issues of home affordability.