Fed Chair Powell attributes high US home prices to a 4M home supply shortage, stating interest rate cuts won't significantly impact prices.

Federal Reserve Chair Jerome Powell stated that high home prices in the U.S. are primarily due to a significant housing supply shortage, estimated at around 4 million homes. While a recent 50 basis point interest rate cut may lower mortgage costs, it is unlikely to significantly impact home prices or demand. Powell emphasized that addressing the supply issue requires market and governmental intervention, while the Fed's role focuses on normalizing rates and reducing inflation.

September 19, 2024
14 Articles

Further Reading