Fed Rate Hike Creates Concern as Wage Growth Lags Behind Home Prices

December 9, 2015

There’s almost unanimous agreement that the economy is strong enough to handle a rate hike, thanks to new jobs created and a safe unemployment level. But is the housing market ready?

“When it comes to the housing there’s a missing piece of the recovery — wage growth. It’s too low to sustain the market,” Redfin reports.

The stagnation of wage growth has barred many first-time buyers from entering the market, and according to Redfin, the stagnation will affect the housing market much more than a rise in interest rates.

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