This week, U.S. Federal Reserve chair Jerome Powell hinted that the U.S. housing market needs a correction. Inflation Economics RealEstateCorrection
the U.S. housing market this week, and the commentary rattled markets during the past few days. Powell hinted at a real estate correction or a cooldown of housing prices to wrestle inflation down back to the 2% levels.
“The deceleration in housing prices that we’re seeing should help bring sort of prices more closely in line with rents and other housing market fundamentals — And that’s a good thing,” Powell insisted. “For the longer term what we need is supply and demand to get better aligned, so that housing prices go up at a reasonable level, at a reasonable pace, and that people can afford houses again,” Powell told the press on Wednesday.
Average 30-Year Fixed Mortgage Interest Rate Jumps 27bps to 6.55%, Economist Says Home Prices Are Still ‘Significantly Overvalued’from bankrate.com on September 24, 2022, indicate that the current average for a 30-year fixed loan is 6.55%. Bankrate.com’s data shows the 30-year fixed mortgage rate jumped 27bps in the last seven days. Ten regions in the U.S.