We’re less than a month away from the next Fed policy meeting, and after several jumbo-sized rate hikes this year, investors are looking for any and all hints about the direction the Fed will go next. But rate hikes impact everyone, not just investors, and we could get a clearer picture of how much higher rates have slammed the housing market with several reports due next week, including the S&P CoreLogic Case-Shiller Home Price Index and the National Association of Realtors’ report on pending home sales. Higher rates make borrowing money more expensive, so if the Fed hikes rates by another 75 basis points, expect much higher interest rates on mortgages, car loans, or credit card debt. Home affordability has continued to decline as the Fed tightens policy, with the national median payment up 3.7% to $2,012 last month, up from $1,941 in September, the Mortgage Bankers Association reported this morning. Stocks are rising this morning on the heels of strong earnings reports from Best Buy and others, and as investors consider the latest comments from Fed officials. As a reminder, markets will be closed Thursday and will close earlier on Friday for the holidays.
