Housing Industry Calls on Powell to Cease Interest Rate Hikes, Citing Concerns of Economic Hard Landing, Because an Economic Hard Landing is a Lot Scarier Than a Hard Pass
The housing industry is turning up the heat on Federal Reserve Chair Jerome Powell, urging a halt to interest rate increases and pointing out the risks of an economic hard landing, according to the National Association of Realtors (NAR).
The Impact of Interest Rates on the Housing Industry
Interest rates play a critical role in the housing industry, affecting buyers and sellers alike. Higher interest rates make mortgages less affordable, reducing demand and potentially negatively impacting the overall market stability. Conversely, lower interest rates encourage buyers to invest in properties, leading to economic growth in the industry. The interplay between interest rates and the housing industry is complex and highlights the need for careful consideration when making decisions that impact it.
Concerns of an Economic Hard Landing
An economic hard landing is essentially an abrupt slowdown in economic growth, and it is precisely what the housing industry fears. If interest rates continue to rise, it could lead to increased mortgage rates, less demand, and a potential decrease in economic growth. This eventuality could result in severe job loss, soaring debts,