In April of 2021, the the Mortgage Bankers Association (MBA), the National Association of Realtors (NAR) and the National Association of Home Builders (NAHB) wrote a joint letter to the Federal Reserve chair, Jerome Powell.
The letter expressed serious concern over rising housing prices due to the current low-interest rate environment, and the potential further decline in housing affordability if interest rates are raised suddenly or sharply. Ongoing market uncertainty about the Federal Reserve’s rate path has caused confusion and doubt, resulting in lenders increasing the interest rates on mortgages. These higher rates, combined with the low inventory of housing, is resulting in climbing home prices nationwide. The letter asked the Fed to consider the plight of those searching for housing and not to raise rates too quickly or drastically.
The main elements of the letter were:
-MBA, NAR and NAHB expressed concern over housing affordability
-Market uncertainty about the Fed’s rate path was exacerbating the issue
-Mortgage lenders increasing interest rate while the inventory of housing is low, resulting in rising home prices nationwide
-The Fed urged to consider the plight of those searching for housing and to not raise rates too quickly or drastically
You can read this full article at: https://www.housingwire.com/articles/mba-nar-nahb-call-on-the-fed-to-provide-market-certainty-about-its-rate-path/(subscription required)
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