First American economist: ‘Housing market isn’t doomed’ by Fed rate hike, but demand is already falling

  • Housing demand and home price appreciation are showing signs of abatement in anticipation of the Federal Reserve's decision.
  • Predictions are pointing to first-time homebuyers as the players who will be most affected by the shift.

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The Federal Reserve’s any-day-now rate increase announcement has prompted the real estate industry’s version of the Y2K jitters. Even before the hike becomes reality, we’re already seeing signs of a market reaction, said Mark Fleming, chief economist at First American.