As the Federal Reserve's meeting approaches, concerns are rising regarding potential interest rate hikes and their impact on the housing market. With mortgage rates nearing 7% last week, there has been a noticeable decline in applications for home purchases. The market is closely watching the Fed's upcoming announcement, as it could significantly influence the spring market dynamics. The increasing mortgage rates have already led to a drop in weekly mortgage demand, highlighting the sensitivity of the housing market to interest rate changes. The situation raises questions about the balance between supply and demand in the housing market, especially if mortgage rates continue to rise.