{"id":47083,"date":"2024-01-30T12:40:17","date_gmt":"2024-01-30T19:40:17","guid":{"rendered":"http:\/\/nevadanewsandviews.com\/?p=47083"},"modified":"2024-02-14T03:57:00","modified_gmt":"2024-02-14T10:57:00","slug":"democratic-senators-ask-fed-to-cut-interest-rates-to-address-housing-affordability","status":"publish","type":"post","link":"http:\/\/nevadanewsandviews.com\/democratic-senators-ask-fed-to-cut-interest-rates-to-address-housing-affordability\/","title":{"rendered":"Democratic senators ask Fed to cut interest rates to address housing affordability"},"content":{"rendered":"
\"\"

Federal Reserve Board Chairman Jerome Powell, back row center, together with other members of the Federal Reserve Board consider an interest rate hike to curb inflation in September. The upward adjustment has slowed the housing market and could result in a dip in prices as few people can afford mortgages.
Manuel Balce Ceneta\/AP Images<\/p><\/div>\n

(Chris Woodward<\/em>) \u2013 A group of Democratic senators is calling on the Federal Reserve to cut interest rates as a way of addressing housing affordability.<\/p>\n

U.S. Sens. Jacky Rosen, D-Nev., John Hickenlooper, D-Colo., Elizabeth Warren, D-Mass., and Sheldon Whitehouse, D-R.I., sent a\u00a0letter<\/a><\/strong>\u00a0to Chair Jerome Powell on Monday, just before\u00a0the Fed is scheduled to meet on Tuesday and Wednesday.<\/p>\n

According to the senators, mortgage rates are at 20-year highs following recent interest rate hikes. Rosen noted in a news release that\u00a0Nevada\u00a0is the number one state for declining mortgage availability, according to a\u00a0report<\/a><\/strong>\u00a0from the\u00a0Mortgage Bankers Association.<\/p>\n

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\u201cFrom December 2021 to December 2022, average monthly payments on 30-year fixed-rate mortgages rose from $1,400 to $2,045, a staggering 46% increase,\u201d the senators wrote. \u201cToday, those payments have skyrocketed to $2,883.\u201d<\/div>\n<\/div>\n<\/div>\n<\/div>\n

The senators went on to state that even the rental market has been impacted by the Fed\u2019s monetary policy.<\/p>\n

\u201cAs high costs and interest rates deter prospective first-time home buyers, many families and individuals choose to stay in the rental market,\u201d they said. \u201cHowever, these households are not guaranteed to find more affordable conditions awaiting them.\u201d<\/p>\n

Market-rate rents have seen a decrease in recent months, but the senators said \u201cthe price of rent is still astonishingly high\u201d compared to before the COVID-19 pandemic.<\/p>\n

\u201cIn addition to keeping renters in their units and constricting the supply of new rental units by making construction more expensive, high-interest rates mean higher mortgage rates for landlords, who may pass off these costs in the form of rent hikes for their tenants,\u201d the letter said.<\/p>\n

The average interest rate on a 30-year mortgage hit 8% in October 2023 after seven weeks of increases. The rate fell in November and was between 6% and 7% at the start of this month\u00a0according<\/a><\/strong>\u00a0to The Mortgage Reports.<\/p>\n

\n

By<\/p>\n

Chris Woodward | The Center Square<\/p>\n","protected":false},"excerpt":{"rendered":"

(Chris Woodward) \u2013 A group of Democratic senators is calling on the Federal Reserve to cut interest rates as a way of addressing housing affordability. U.S. Sens. Jacky Rosen, D-Nev., John Hickenlooper, D-Colo., Elizabeth Warren, D-Mass., and Sheldon Whitehouse, D-R.I., sent a\u00a0letter\u00a0to Chair Jerome Powell on Monday, just before\u00a0the Fed is scheduled to meet on […]<\/p>\n","protected":false},"author":88912,"featured_media":47085,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[748],"tags":[3466],"_links":{"self":[{"href":"http:\/\/nevadanewsandviews.com\/wp-json\/wp\/v2\/posts\/47083"}],"collection":[{"href":"http:\/\/nevadanewsandviews.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/nevadanewsandviews.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/nevadanewsandviews.com\/wp-json\/wp\/v2\/users\/88912"}],"replies":[{"embeddable":true,"href":"http:\/\/nevadanewsandviews.com\/wp-json\/wp\/v2\/comments?post=47083"}],"version-history":[{"count":1,"href":"http:\/\/nevadanewsandviews.com\/wp-json\/wp\/v2\/posts\/47083\/revisions"}],"predecessor-version":[{"id":47086,"href":"http:\/\/nevadanewsandviews.com\/wp-json\/wp\/v2\/posts\/47083\/revisions\/47086"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/nevadanewsandviews.com\/wp-json\/wp\/v2\/media\/47085"}],"wp:attachment":[{"href":"http:\/\/nevadanewsandviews.com\/wp-json\/wp\/v2\/media?parent=47083"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/nevadanewsandviews.com\/wp-json\/wp\/v2\/categories?post=47083"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/nevadanewsandviews.com\/wp-json\/wp\/v2\/tags?post=47083"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}