In a letter to Fed Chair Jerome Powell this week, the Mortgage Bankers Association (MBA), the National Association of Realtors (NAR), and the National Association of Home Builders (NAHB) urged the Fed to state that it’s not considering further rate hikes and that it will hold off on selling any more mortgage-backed securities until the housing finance market stabilizes.
The move is the first time the groups have addressed the central bank directly since its rate hiking campaign started in March of 2022 and is the latest sign of how “ongoing market uncertainty” around the Fed’s rate course is pummeling the housing market, which — the groups say — could spill over to the broader economy.
For the fifth consecutive week, mortgage rates rose as ongoing market and geopolitical uncertainty continues to increase. The good news is that the economy and incomes continue to grow at a solid pace, but the housing market remains fraught with significant affordability constraints. As a result, purchase demand remains at a three-decade low.
