The US has faced a major problem due to the shortage of affordable housing, which has become one of the main challenges for the American economy. Treasury Secretary Janet Yellen recognized that the situation needed an immediate solution and called on the government to use all possible tools to fight this crisis. This is reported by Bloomberg .
"Housing is a huge issue, and affordable housing has become a critical priority in many parts of the country," Yellen said, stressing the need for urgent action.
According to the secretary, Washington must step up efforts to solve the housing crisis, because rising real estate values and high mortgage rates have made buying a home an unattainable dream for many Americans. Yellen also called on Congress to pass legislative changes that would simplify the process of building affordable housing in the country.
This crisis is becoming more and more relevant on the eve of the presidential elections, because the housing problem worries a significant part of Americans. High mortgage rates, which have risen due to the Federal Reserve System's (FED) anti-inflation measures, have become one of the main causes of this problem. At the beginning of 2021, the average mortgage rate was 2.65%, but in the fall of 2023 it reached a 24-year record level of 7.79%.
Higher mortgage rates have led to a significant reduction in home sales, while rental rates continue to rise, adding pressure to the real estate market.
