NAR and industry partners wrote to the Federal Reserve, urging it to take actions to help stabilize the market for mortgage backed securities (MBS). Liquidity issues in that market has resulted in a historically wide spread between the 30-year fixed rate mortgage and the 10-year Treasury. This spread in turn has caused mortgage rates to rise more than they should have even with the Fed raising short-term rates.
NAR worked with the Mortgage Bankers and National Association of Home Builders to urge the Fed to provide more stability to the market through better messaging and clear guidance that it will not take destabilizing action such as selling its holding of MBS. The coalition believes that these efforts to ease the upward pressure on long-term rates.