Mortgage Rates Increase Following Fed Policy Pivot
NAHB The Federal Reserve on Dec. 15 signaled that it will be shifting from an accommodative monetary policy stance that has supported the economic rebound from the 2020 recession toward a tighter policy as a direct result of ongoing, elevated inflation data. For the housing community, this policy pivot means that mortgage interest rates are likely to rise in 2022. This will reduce housing affordability and again emphasizes the need for policymakers to enact solutions to fix the nation’s supply chains that are impeding more robust housing construction. At the conclusion of its December policy meeting, the Fed announced changes to its outlook and projections in response to increased inflation data and inflation expectations that…