Fed Chairman Powell provides guidance after recent rate hikes
Federal Reserve chairman Jerome Powell spoke to the media on Tuesday and provided additional guidance as to how the Fed views the current economic situation. Powell did state that the Fed has seen positive progress in the inflation fight, but another hot jobs report could trigger additional rate hikes beyond their current plan.
Additional interest rate hikes are meant to make it harder for businesses to borrow money and potentially triggering a slowdown in hiring. Interest rate hikes would also impact the bond market, which influences the mortgage rate market.
There are a lot of moving parts to this, but if you’re thinking about getting into a new home in the next few months, this could be a great time to lock in your mortgage rate.
We’re a month into 2023. How is the housing market shaping up?
Initial projections for the housing market in 2023 were mixed. Some experts called for the market to thaw in early 2023, others felt the market would slow in the first few months of the New Year. We’re over a month into 2023, so what does the current prediction look like?
USA Today did a deep dive into the current housing market and is expecting a bit of a mixed market. Some markets will see declines, while others will actually heat up. Their experts predict that the market will be very region-specific as the year plays out, and may not follow nationwide trends the way it has in the past.
Kansas City vs. Philadelphia: Which housing market is hotter?
While the Kansas City Chiefs and Philadelphia Eagles will play in the big game on Sunday, Realtor.com breaks down the differences in the housing markets in the two metro areas.
They compared the two areas for food & drink, prices & affordability, housing supply, housing demand, and market ‘hotness’.
Philadelphia is actually a bit more affordable than Kansas City. The median list price in Kansas City is actually 8% higher than Philadelphia at $347,425. Houses in Kansas City stay on the market for about 15 days longer than in Philadelphia, and Philadelphia has seen about 12,000 more listings in the last year. Housing demand is almost twice as high in Philadelphia than in Kansas City.
The final score for the two markets? Philadelphia is a better market for sellers in 2023, while Kansas City is shaping up to be more of a buyer’s market.
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