Housing Trade Groups Warn Powell That Fed Policies Fuel ‘Ongoing Market Uncertainty’

Weekly Real Estate News, Oct. 9, 2023–Phil Hall
The leadership of the Mortgage Bankers Association, National Association of Home Builders and National Association of Realtors sent a joint letter to Federal Reserve Chairman Jerome Powell warning that the central bank’s policy of rate hikes is creating tumult within the U.S. housing market.
In their letter, the trade groups told Powell that “ongoing market uncertainty about the Fed’s rate path is contributing to recent interest rate hikes and volatility.” As a result of the Fed’s actions, the trade groups pointed to mortgage rates being elevated to a level not seen since 2000 and mortgage application activity plummeting to a level not seen since 1996.
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