Janet Yellen Highlights Housing Affordability Crisis for First-Time Buyers
Treasury Secretary Janet Yellen describes the current housing market as nearly inaccessible for first-time homeowners due to soaring prices and mortgage rates.
- Janet Yellen testified that rising home prices and mortgage rates have made it 'almost impossible' for first-time buyers to purchase homes.
- Median home prices have surged 40% over the last four years, with current rates nearing 8%, exacerbating affordability issues.
- Yellen cited a 'lock-in effect' where existing homeowners hesitate to sell due to low mortgage rates, further straining the housing supply.
- The Biden administration proposes tax credits to alleviate these issues, including a $10,000 credit for first-time buyers and sellers of starter homes.
- Experts warn that while proposed measures may boost demand, significant supply shortages and increased home prices could persist.
Business Insider 
Fortune 
