The Federal Reserve increased interest rates by a quarter point to a range of 5.25% to 5.5% on July 26th, and hinted at another potential increase before the end of 2023. Following the announcement, Marty Green spoke with reporters about the impact of the latest rate hike on mortgage rates and the residential real estate market.
“Inflation continues to moderate and, for now, the economy appears to be poised for a very difficult-to-achieve soft landing,” Green said. “This gives the Fed more runway to continue its inflation fight. However, this soft landing can become very bumpy if the Fed doesn’t recognize that the time is rapidly approaching for it to patiently let the cumulative effect of its decisions work through the economy.”
Green added: “The housing sector is again showing signs of slowing, with inventory once again a critical issue. The higher mortgage rates triggered by the Fed’s policy have caused more sellers to sit on the sidelines given the large differential between the rate they enjoy on their current home compared to the possible interest rate on any home they may purchase today. This means buyers have fewer choices and may sit on the sidelines as well. If the Fed isn’t careful, this critical industry may once again slow to crawl in the fall and winter.”
Green’s comments were included in the following coverage:
- Forbes Advisor: 30-Year Rate Rises To 6.81%, Says Freddie Mac, As July’s Mortgage Heat Wave Sizzles On
- Housing Wire: The good news? The Fed doesn’t expect a recession. The bad news? Housing.
- Mortgage Professional America: Commercial real estate hit hard by Fed’s rate hike campaign
- National Mortgage Professional: Fed Navigates Tightrope Between Inflation And Recession
- Scotsman Guide: Federal Reserve raises rates 25 basis points, balks at future policy guidance
- Kiplinger Personal Finance: Mortgage Applications Decreased in Latest MBA Weekly Survey
- DS News: Fed No Longer Predicts Near-Term Recession—Industry Experts Respond
- MReport: Industry Insights: Breaking Down the Fed’s Shift on Recessionary Forecast
- The Chrisman Commentary: Printed Homes; Marty Green on the Fed; Further Fed Rate Hike Reaction
- Mortgage Professional America: Fed rate hike triggers slight increase in 30-year mortgage rate