{"id":143113,"date":"2023-10-12T15:57:09","date_gmt":"2023-10-12T19:57:09","guid":{"rendered":"https:\/\/ncrc.org\/?p=143113"},"modified":"2023-10-12T15:57:16","modified_gmt":"2023-10-12T19:57:16","slug":"american-banker-rate-lock-in-effect-is-hurting-housing-and-mortgage-markets-powell-says","status":"publish","type":"post","link":"https:\/\/ncrc.org\/american-banker-rate-lock-in-effect-is-hurting-housing-and-mortgage-markets-powell-says\/","title":{"rendered":"American Banker: Rate ‘Lock-in’ Effect Is Hurting Housing And Mortgage Markets, Powell Says"},"content":{"rendered":"\n

American Banker, September 22, 2023, Rate ‘Lock-in’ Effect Is Hurting Housing And Mortgage Markets, Powell Says<\/a><\/p>\n\n\n\n

Federal Reserve Chair Jerome Powell acknowledged that the so-called “lock-in” effect has contributed to stagnation in the mortgage lending market and the nation’s broader housing woes, but he said he doesn’t regret the central bank’s monetary policy moves that played a major role in the problem.<\/p>\n\n\n\n

By some estimates, more than 90% of homeowners have locked in mortgage rates below 6%, with many paying less than 4% on loans made while the Fed held interest rates near zero. The disparity between those rates and current market rates, currently nor<\/a>th of 7%<\/a>, is discouraging some homeowners from selling their properties out of a fear of taking on a more expensive mortgage to purchase their next home. <\/p>\n\n\n\n

Powell said that dynamic is “one of the explanations for what’s happening broadly in the [housing] market,” but it likely would not make the Federal Open Market Committee think twice about bringing interest rates to their lower bound again, should economic conditions warrant such a move.<\/p>\n","protected":false},"excerpt":{"rendered":"

American Banker, September 22, 2023, Rate ‘Lock-in’ Effect Is Hurting Housing And Mortgage Markets, Powell Says Federal Reserve Chair Jerome Powell acknowledged that the so-called “lock-in” effect has contributed to stagnation in the mortgage lending market and the nation’s broader housing woes, but he said he doesn’t regret the central bank’s monetary policy moves that played a major […]<\/p>\n","protected":false},"author":3373,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_angie_page":false,"content-type":"","_uag_custom_page_level_css":"","_monsterinsights_skip_tracking":false,"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center 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Banker, September 22, 2023, Rate ‘Lock-in’ Effect Is Hurting Housing And Mortgage Markets, Powell Says Federal Reserve Chair Jerome Powell acknowledged that the so-called “lock-in” effect has contributed to stagnation in the mortgage lending market and the nation’s broader housing woes, but he said he doesn’t regret the central bank’s monetary policy moves that played a major…","_links":{"self":[{"href":"https:\/\/ncrc.org\/wp-json\/wp\/v2\/posts\/143113","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ncrc.org\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ncrc.org\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ncrc.org\/wp-json\/wp\/v2\/users\/3373"}],"replies":[{"embeddable":true,"href":"https:\/\/ncrc.org\/wp-json\/wp\/v2\/comments?post=143113"}],"version-history":[{"count":0,"href":"https:\/\/ncrc.org\/wp-json\/wp\/v2\/posts\/143113\/revisions"}],"wp:attachment":[{"href":"https:\/\/ncrc.org\/wp-json\/wp\/v2\/media?parent=143113"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ncrc.org\/wp-json\/wp\/v2\/categories?post=143113"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ncrc.org\/wp-json\/wp\/v2\/tags?post=143113"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}