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Federal Reserve increases interest rate to control inflation

Posted at 6:12 AM, Jul 29, 2022
and last updated 2022-07-29 07:46:33-04

TULSA, Okla. — With another interest rate hike announced by the Federal Reserve, those in Green Country are expected to see some effects, especially Tulsans.

The Federal Reserve is increasing interest rates by 0.75% for the second time. The goal is to slow down spending and borrowing to try to control inflation. By doing this, the Federal Reserve hopes to stabilize costs like groceries or gas.

Greg Burge, an economics professor for the University of Oklahoma, says Tulsa is a hot housing market right now so we will see the effects of this hike.

“I would expect house prices to soften a little bit. You know, maybe year over year house price appreciation should slow down. At least where I live it seems like houses are at least 25 or 30% more than they were when COVID-19 hit back in 2020," says Burge. "I wouldn’t expect that rate of increase to continue as strongly as it's been rising I would expect more of a plateau and maybe a softening of home price appreciation rates.”

Burge also says to expect to see rent prices stabilize too. He hopes the labor market, however, doesn't take a hit from this.

He suggests those looking to buy a home now to be more aware of what type of home they're looking for, the price of it, and, most importantly, what they can afford.

Even if you're not looking to buy a home, Burge says homeowners will still face some higher prices so he advises households to watch their expenses.

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