Federal Reserve Bank of Philadelphia President Patrick Harker said higher interest rates are making it more challenging for first-time home buyers by raising borrowing costs and limiting inventory, which is also leading to higher home prices. Higher rates discourage current owners from listing their homes for sale, which puts a crunch on inventory, Harker said Monday in remarks prepared for a convention in Philadelphia organized by the Mortgage Bankers Association. “The rise in interest rates not only raised borrowing costs on those looking to purchase a home, but it also contributed to the contraction of inventory,” ... (full story)