Interest Rates Are Too High, Housing Associations Tell Fed
Estimated reading time: 3 minutes
Homebuyers are in a pinch: Costs are notably high, and inventory is notably low. Now America’s major housing associations are pointing fingers at the Federal Reserve, calling for action.
The Mortgage Bankers Association, the National Association of Realtors and the National Association of Home Builders penned an open letter to the Fed, pleading for it to reconsider its current interest rate policy.
The Federal Reserve slashed interest rates to near zero in the wake of the pandemic when the economy ground to a halt. Then, in an effort to prevent the economy from overheating and get the high pandemic era inflation under control, the central bank hiked rates. The Fed’s benchmark rate currently sits in the range of 5.25%-5.50%.
But the letter to the Fed emphasizes growing nervousness about the fallout of high rates.
Recent data points highlight the mounting pressure on homebuyers. Mortgage rates have reached a 23-year high, while application activity has hit the lowest level since the mid-1990s.
The letter asks the Fed to firmly announce no further rate hikes and ensure a hands-off approach on mortgage-backed securities holdings — at least until the housing market once again sits on a solid foundation. While the message may be intended for the central bank, it provides a welcome signal to homebuyers struggling with the tough market, too: you are not alone in your frustration.
SoFi Securities (Hong Kong) Limited and its affiliates (SoFi HK) may post or share information and materials from time to time. They should not be regarded as an offer, solicitation, invitation, investment advice, recommendation to buy, sell or otherwise deal with any investment instrument or product in any jurisdictions. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
SoFi HK does not make any warranties about the completeness, reliability and accuracy of this information and will not be liable for any losses and/or damages in connection with the use of this information.
Any product, logos, brands, and other trademarks or images featured are the property of their respective trademark holders. These trademark holders are not affiliated with SoFi HK or its Affiliates. These trademark holders do not sponsor or endorse SoFi HK or any of its articles.
Without prior written approval of SoFi HK, the information/materials shall not be amended, duplicated, photocopied, transmitted, circulated, distributed or published in any manner, or be used for commercial or public purposes.
About SoFi Hong Kong
SoFi – Invest. Simple.
SoFi Hong Kong is the All-in-One Super App with stock trading, robo advisor and social features. Trade over 15,000 US and Hong Kong stocks in our SoFi App now.