Housing Prices Way Up And Now Mortgage Rates Too Future home buyers in Philadelphia have rarely been challenged with such price appreciation before 2021 and early 2022. Home prices have exploded and now the Federal Reserve has raised its benchmark interest rate 2 percentage points in the first quarter of 2022. The Fed has stated this is necessary to dampen inflation and has warned of more increases during the year. One thing is certain, fewer people will be able to afford the home they want. Higher mortgage interest rates of 2 percentage points, currently at 5%, will require an additional $300 to $400 in monthly interest payments for a median priced home in Philadelphia. That is bad news for people who are struggling to qualify for a home loan. And as a professional home buyers company in Philadelphia, we have seen the impact of the low inventory of homes for sale. There are far fewer homes available to repair and remodel at this time.