Mauricio Umansky, CEO of The Agency, has urged the Federal Reserve to reconsider its current interest rate policy and explore options for lowering rates to make home ownership more accessible. In an interview with ‘America Reports,’ Umansky pointed to record high home prices as a direct result of limited supply and historically low mortgage rates. He argued that while low rates have made it easier for buyers to qualify for loans, they have also contributed to a surge in demand that has driven prices beyond the reach of many first-time buyers.
‘The current market is skewed toward those who can afford to pay high prices, leaving the average buyer struggling to break into the market,’ Umansky said. He called for a more balanced approach that includes both lower interest rates and an increase in the construction of affordable homes. According to data from the National Association of Realtors, home prices have risen by over 20% in the past year, while inventory levels have remained at a 12-month low. This shortage, combined with the current rate environment, has created a situation where the market is more seller-driven than buyer-driven.
Umansky also emphasized the importance of government intervention to stimulate housing production. He suggested that policies such to encourage the development of affordable housing units or tax incentives for builders could help alleviate the current supply crisis. His comments come at a time when the Federal Reserve is closely monitoring the housing market for signs of overvaluation and potential risks to economic stability. While some economists argue that rising home prices are indicative of a strong housing market, Umansky and other industry leaders warn that the current trajectory is unsustainable and could lead to a crash similar to the 2008 financial crisis.