Hello everybody my name is Cade Olof and welcome back to Suburban Snacks. This month’s snack is… yogurt peppermint pretzels! In this episode, we’ll be informing you on why the Fed is planning for rate hikes in 2022. Yes, that’s right, if you have not heard the Fed is planning for rate hikes in 2022. According to Realtor Magazine, they plan to have multiple rate increases and will taper its monthly asset purchases at a quicker, much more aggressive pace than analysts originally anticipated. But why do this? What’s the point of increasing rates? Well, the purpose is to hopefully manage the all-time high inflation we’re experiencing as a nation. Typically, when inflation is too high, the Federal Reserve will raise interest rates to slow the economy down. And vice versa, when inflation is too low, the Fed lowers interest rates to stimulate the economy. But since we’re a full-service Real Estate company here at Suburban offering property management services and both buyer and seller representation services, let’s talk about what this is going to do to mortgage rates! According to Realtor Magazine, the Fed’s short-term interest rate does not directly influence mortgage rates but it does often influence them.