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MBA, NAR, NAHB Call for Halt to Fed Rate Hikes
Ongoing market uncertainty about the Federal Reserve’s rate path is contributing to “recent interest rate hikes and volatility,” the Mortgage Bankers Association, National Association of Realtors and National Association of Home Builders wrote to Fed chairman Jerome Powell. The three industry groups called on Powell and the Fed’s Board of Governors to hold off on further increases in the federal funds rate.
The letter also urged Powell to make it clear that the Fed will not sell off any of its MBS holdings “until and unless the housing finance market has stabilized and mortgage-to-Treasury spreads have normalized.” The result will be “greater certainty about the Fed’s rate path and its plans for the MBS portfolio.”
The letter concluded, “Housing activity accounts for nearly 16% of GDP according to NAHB estimates. We urge the Fed to take these simple steps to ensure that this sector does not precipitate the hard landing the Fed has tried so hard to avoid.”
For up-to-the-minute insights on the state of the market and what’s next in the current cycle, be sure to attend Connect Investment & Finance 2023 on Oct. 24 at the Hyatt Regency O’Hare in Rosemont, IL. Click here to register.
- ◦Financing
- ◦Economy
