Housing Groups Urge Fed Pause on Rate Hikes as High Mortgage Rates Put Homes Out of Reach

Housing economists urge the Fed not to raise rates further, as high mortgage rates have made homes unaffordable and caused home sales to plunge 15% from a year ago.

With limited inventory and low affordability, home prices rose 3% to an average of $394,000, the 3rd straight monthly increase.

The NAR, MBA, and homebuilder groups wrote the Fed expressing "profound concern" over rate hikes, saying more could risk economic growth and a recession.

Mortgage rates hit 8% this week, the highest since 2000, putting more pressure on home sales ahead.

The groups urge the Fed to pause rate hikes to provide relief to the housing sector, which makes up nearly 16% of economic activity.