The recent news of the Federal Reserve increasing interest rates by 0.25 percentage points marks the tenth consecutive hike. While this decision aims to reduce liquidity in financial markets and control high inflation, how could it impact the Boston real estate market? This blog post will explore the potential consequences of rising interest rates on the Boston real estate market.

Mortgage rates and home affordability:  Although the federal funds rate doesn't directly impact mortgage rates, they typically move in the same direction. Higher interest rates often lead to higher mortgage rates, affecting home affordability. As mortgage rates rise, potential homebuyers in Boston may find it more challenging to afford homes due to increased financing costs