The former FHFA director said, given the Federal Reserve’s commitment to fight inflation, home prices could fall by double digits in percentage terms over the next few years.
Conservative economist Douglas Holtz-Eakin said the Federal Reserve’s exit from the MBS market is helping drive up interest rates in the affordable housing space. The remedy, he said, is GSE reform.
A new research paper co-authored by officials at the Federal Reserve argues that the public/private nature of the FHLBs has allowed them to engage in activities not expressly foreseen by Congress.
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