In June, Fed Chair Jerome Powell told reporters that the overheated U.S. housing market—which saw U.S. home prices rise over 40% in just over two years—needed a "reset." And higher mortgage rates, he said, would slowly bring "balance" back to the market.
“We saw [home] prices moving up very very strongly for the last couple of years. So that changes now...I’d say if you are a homebuyer, somebody or a young person looking to buy a home, you need a bit of a reset. We need to get back to a place where supply and demand are back together," Powell said.
