Posted 10/9/2023, 8:40:00 PM
Housing Groups: Unclear Fed Policy Driving Mortgage Rates Over 1% Higher, Risking Economic Growth
- Mortgage rates are over 1% higher than they should be due to Fed uncertainty, per housing industry groups
- Groups say rates would be 6.29% not 7.49% if Fed was clearer on rate path
- Higher rates pose "broader risks to economic growth" and raise recession odds
- Groups ask Fed to clearly state no more hikes planned and won't sell mortgage bonds soon
- Home sales account for nearly 16% of GDP, so higher rates could spur recession
