[email protected] 512-710-0337

Fed makes largest rate hike in 30 years

Austin Real Estate News

June 15, 2022

​WASHINGTON – The Federal Reserve has raising its key interest rate by three-quarters of a point—its largest hike in nearly three decades

"The increase is in response to continued high inflation," said Dr. Harold Hunt, research economist with the Texas Real Estate Research Center. "This is intended to help dampen inflation by cooling demand. Guidance from the Fed calls for further rate increases, which is likely to translate into increased mortgage rates through at least the end of this year."​

The Associated Press reports that "borrowing costs have already risen sharply across much of the U.S. economy in response to the Fed’s moves, with the average 30-year fixed mortgage rate topping 6 percent, its highest level since before the 2008 financial crisis, up from just 3 percent at the start of the year.

"The yield on the two-year Treasury note, a benchmark for corporate borrowing, has jumped to 3.3 percent, its highest level since 2007."


You May Also Like…

DISCO sets up shop at new Austin HQ

AUSTIN – Artificial intelligence solution developer DISCO has opened a 46,000-sf headquarters within the One Eleven Congress building downtown.Forty percent of the company's 600 employees will occupy the space at 1 Congress Ave​​. Atlanta-based Cousins Properties...

read more

The Johnny underway in east Austin

​​AUSTIN – The Geyser Group and The Sephira Group have broken ground on The Johnny, a multifamily complex at 613 W. St. John's Ave. The property comprises 76 studio and one- and two-bedroom units. Sixteen are allocated for residents making less than 60 percent of the...

read more
Home Buyer Readiness
Skip to toolbar