The Fed is meeting tomorrow for the first time in 2023 to discuss new economic policy moving forward. It is largely anticipated that the Fed will raise the benchmark rate by another 0.25% as opposed to the 0.5% rate hikes that we experienced last year. 

What does this mean for real estate and how does it affect mortgage rates?

The Fed has their goal set for inflation to return to 2%. We witnessed inflation improve from its 9% peak in June 2022, however in retrospect with inflation currently at 6.5% we are still a long way to go. 

So far the interest rate hikes have proven to be somewhat effective, however the Fed is now concerned about wage growth running around 6% which can prove troublesome to disperse inflation in service based products. 

That said, the Fed may continue to inflict more pain on the market in order to ease "service based inflation" at the expense of goods and real estate taking more damage. 
Moving forward, we can continue to service our clients, new and returning, by offering them unique programs to help them secure lower interest rates and reminding them of the ability to refinance once mortgage rates inevitably improve within the next 6-9 months.