Posted 10/10/2023, 3:24:00 PM
Housing Groups Urge Fed to Halt Rate Hikes, MBS Sales to Avoid Housing Market Crash and Broader Recession
- Housing groups warned Fed that more rate hikes likely to cause recession without changes
- Urged Fed to stop hikes & pledge not to sell mortgage-backed securities holdings
- Noted housing activity is 16% of GDP, downturn would impact broader economy
- Asked for statements saying no more hikes contemplated and no MBS sales until market stabilizes
- Said steps would reduce volatility, improve home builder sentiment, increase supply to fight inflation