The Federal Reserve last week raised its short-term benchmark rate by a half-percentage point, the largest increase since 2000, continuing along the path of a series of increases it announced back in March. 

The move is aimed to combat inflation, which sits at 8.5%—and the Fed target rate is 2%. Fortune reported that this hike was intended to directly influence the “red-hot” U.S. housing market. “In the Fed’s eyes, it can’t rein in inflation unless unsustainable home price growth—which is up 19.8% over the past 12 months—decelerates significantly,” the article said. 

However, the article continued, housing economists said it shouldn’t do too much—for now, believing financial markets have already priced in these rate hikes. 

The Wall St. Journal had a similar view, while suggesting mortgage rates could continue to climb. “Anxious house hunters should look at the broader historical context, Charlotte Geletka, managing partner of Silver Penny Financial, a financial-services firm in Brookhaven, Ga. Told the Journal. “Though it might come as little consolation to buyers who have grown used to years of ultra-low rates, compared with decades past, a 5% mortgage rate is still considered low.” 

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