The housing market continues to deal with affordability challenges, prompting the Biden Administration to unveil new initiatives aimed at addressing this pressing issue. However, in an exclusive interview with Yahoo Finance, US Secretary of the Treasury Janet Yellen tempered expectations, emphasizing that "there's no silver bullet" when it comes to solving the housing affordability crisis.
To gain deeper insights, Middleburg Communities Chief Economist Brad Case shares his perspectives on the ongoing affordability dilemma affecting US homebuyers.
Case highlights two factors driving the current market dynamics: first, the surge in demand is pushing home prices higher; and second, the Federal Reserve has "limited" impact, noting "the solution is really at the local level."
"If you bring down interest rates, all that does is make house prices go up more and that wrecks affordability," Case explains, advocating for a different approach: "What you really need is a moderation in house prices and the only way to get that is supply growth."
Watch Yahoo Finance's full, exclusive interview with US Secretary of the Treasury Janet Yellen.
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