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Housing industry experts were not surprised by the move.

“As widely expected, the Federal Reserve hikes the federal funds rate by 75 basis points, its sixth straight hike, but hints at a possible slowdown in the pace of increases,” said First American deputy chief economist Odeta Kushi. “In the interest-rate sensitive sector of housing, that policy is working – the housing market is cooling from the red-hot pace of the past two years. In other corners of the economy, especially the labor market, the Fed is not yet seeing the same swift pullback in demand.”

Mortgage rates remain above 7%, which has caused refinance activity to effectively stop and home purchase activity to slow markedly,” said Mike Fratantoni, chief economist of the Mortgage Bankers Association (MBA). “The combination of elevated mortgage rates and steep home-price growth over the past few years has greatly reduced affordability. The volatility seen in mortgage rates should subside once inflation begins to slow, and the peak rate for this hiking cycle comes into view.”

Keller Williams chief economist Ruben Williams said the housing market appears well-positioned to weather slower activity but is unlikely to improve until mortgage rates become more stable.