Housing Groups Urge Fed to Pause Rate Hikes as Mortgages Hit 23-Year High of 8%
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Mortgage rates at 23-year high of 8% hurting housing demand and affordability. Median home price has surged to $407,100.
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Industry leaders concerned about impact of further Fed rate hikes. National realtor, builder, and banker groups wrote open letter to Powell urging a pause.
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Fed has raised rates 11 times in 2022-2023 to 5.25-5.50% range, the highest since 2000. Speed and magnitude called "painful and unprecedented".
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Letter urges Fed to not sell off mortgage-backed securities until housing market stabilizes and spreads normalize.
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Groups warn further increases and spread widening risk broader economic growth, increasing recession likelihood and magnitude.