The Federal Reserve ended a two-day policy meeting on Thursday with the announcement that interest rates would remain unchanged as expected by the capital markets. However, the CME Group’s Fed Watch Tool shows a 75.8% chance that a fourth and final rate hike will cap off 2018.

California Dreaming of Lower Rates

Thanks to a combination of high mortgage rates and decreased affordability, the Southern California housing market, in particular, has taken a hit with the number of home sales, new and existing, dropping to a level not seen in over a decade.

Based on data from real estate analytics company CoreLogic, the number of new and existing homes sold during the month of September fell by 18% compared to the same time a year ago. Not since September 2007, when the after-effects of the financial crisis were bubbling over, has home sales fallen by this much.

Data from the National Association of Realtors show that the Quarterly Housing Affordability Index has been dropping thanks to a rise in median home prices.

Related: Housing Market can Adjust to a Gradual Interest Rate Hike

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