Part 4/12:
There is ongoing debate about the Federal Reserve's policies, especially regarding interest rates. Currently, discussions are underway to replace the Fed Chair, a move many see as overdue. The core issue pinpointed is the elevated mortgage rates—a consequence of inflation-driven rate hikes—a situation that has significantly cooled the housing market.
Since Biden's inflation spike in 2021, mortgage rates have soared from around 2.5-3% to approximately 7%. This increase has frozen the housing market, deterring many Americans from buying or selling homes. As a result, homeowners are reluctant to move due to high-interest mortgage commitments, and potential buyers are deterred by the high costs, opting instead to rent.