After record-low interest rates at under 3 percent spurred whirlwind economic activity in 2021, the United States Federal Reserve began increasing interest rates in 2022.
Rates have remained consistently high for over a year, reaching nearly 8 percent in November 2023. And it’s had an impact on the real estate market.
But there is some good news. Federal Reserve Chair Jerome Powell testified earlier this month to Congress that an interest rate cut is likely in 2024. Powell did not make any promises, as the Fed is waiting for the right market and economic conditions. He did not claim to know when exactly rates would be cut. Here’s why rates haven’t been cut yet.
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