Buyers are offering more than sellers are actually asking 
This is a problem.
There is a frenzy out there in the real estate market. Buyers are driving the prices higher than sellers. This is not a problem for the Federal Reserve but it is a problem for lenders. However, this is coming at a time of inflation, To combat inflation, the Federal Reserve will do its best to slow price increases. By increasing the interest rate The Fed charges banks for short-term loans, the mortgage market will respond by increasing rates too.
