How the Fed’s escalating fight against inflation is affecting the hot housing market

covid-19 pandemic Chaos ensued in the US housing market, skyrocketing prices, dwindling inventories and intense bidding wars.

Then came record inflation, which pushed the price of everything higher.

The US Federal Reserve, however, is waging an intense battle against rising prices, using interest rates as its primary weapon.

A side effect of raising interest rates, however, is higher mortgage rates.

What’s more, the Fed now has $2.7 trillion in mortgage bonds, part of a plan to steer the financial system when COVID first begins. And it started 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 learn more about how the Fed’s interest rate tools affect the housing market, and how the Fed plans to offload the trillions of dollars of mortgage debt on its balance sheet.