Federal Reserve Chairman Jerome Powell said that the U.S. housing market will probably face a reset after a period of “red hot” price increases that have put home ownership out of reach for many Americans.
The average contract rate for a 30-year fixed rate mortgage had already hit an historically high 6.25 percent last week to a level not seen since the Great Recession, said the Mortgage Bankers Association (MBA).
The Fed Chair spoke on housing prices after the central bank wrapped up its Federal Open Market Committee meeting on Sept. 21, in which it raised interest rates by another 75 basis points to fight high inflation….