Democratic senators ask Fed to cut interest rates to address housing affordability

(The Center Square) – A group of Democratic senators is calling on the Federal Reserve to cut interest rates as a way of addressing housing affordability.

U.S. Sens. Jacky Rosen, D-Nev., John Hickenlooper, D-Colo., Elizabeth Warren, D-Mass., and Sheldon Whitehouse, D-R.I., sent a letter to Chair Jerome Powell on Monday, just before the Fed is scheduled to meet on Tuesday and Wednesday.

According to the senators, mortgage rates are at 20-year highs following recent interest rate hikes. Rosen noted in a news release that Nevada is the number one state for declining mortgage availability, according to a report from the Mortgage Bankers Association.

“From December 2021 to December 2022, average monthly payments on 30-year fixed-rate mortgages rose from $1,400 to $2,045, a staggering 46% increase,” the senators wrote. “Today, those payments have skyrocketed to $2,883.”

The senators went on to state that even the rental market has been impacted by the Fed’s
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