A 2 point increase in rates is hard to ignore even in the hottest of markets. What impact will this have? Right now, it depends on the market and, where there is simply no supply coupled with higher rents, not much. 5.5% percent is historically still a great rate and sure it’s a hard pill to swallow when rates were in the threes just months ago but, with more rate hikes on the horizon, it may make the spring market all the more intense. Recent data released in RI, shows inventory fell to less than a one month supply (if no new listings came on the market, all the inventory would be sold in under a month). Whereas, a six month supply is the golden rule of a balanced market. Still, rising home prices and rates will make force some buyers out of the market and will do what the Fed intended to cool rising home prices. At the end of the day, we need more supply: rentals and home ownership options. Here’s to hoping bright minds will align to solve this problem before our middle class is pushed further out of ownership.