5/9/22 9:35 AM
Recently, the Federal Reserve increased its rate for target federal funds by a fourth of a percentage from almost zero to stem inflation. There are also plans to implement six additional increases before the year is over, which is causing concern for sellers and buyers of real estate in NYC.
However, the price increase for homes for sale in NYC will likely not be detrimental to the sales market in the area. Homes in the region, as well as condos for sale in NYC, have seen record sales in the last two or three quarters. However, the changes in prices are going to affect first-time homebuyers in most instances. There are also other factors that could halt real estate sales in NYC, including extreme economic inflation and a lack of real estate properties for sale.
This decision by the Federal Reserve was an attempt to manage what has been the highest inflation in four decades, according to Bankrate.com's chief financial analyst Greg McBride. The rate established by the Fed is the interest rate that banks use to borrow and lend funds to one another overnight. The rate is not the same as what customers pay to borrow the money, even though it will impact mortgages and other consumer loans which are already become more expensive.