Bessent says US housing market in 'recession' due to Federal Reserve interest rate policies

Group 1: Economic Overview - U.S. housing market may be in recession due to high interest rates, according to Treasury Secretary Scott Bessent, who advocates for the Federal Reserve to cut rates [1] - Bessent believes that lower-income consumers are disproportionately affected by the downturn, as they carry more debt than assets [1] Group 2: Federal Reserve Actions - The Federal Reserve cut its benchmark federal funds rate for the second time this year, although mortgage rates are more influenced by long-term bond yields [2][3] - Lower mortgage rates could enhance housing affordability for buyers, as noted by Jessica Lautz from the National Association of Realtors [5] Group 3: Housing Market Trends - Mortgage rates have decreased for four consecutive weeks, with the average 30-year fixed mortgage rate at 6.17%, the lowest in over a year [6] - Home sales have stagnated at around 4 million annually, compared to a pre-pandemic average of about 5 million [9] - Home prices continue to rise despite stalled sales, and homeowners are selling less frequently, averaging once every 11 years instead of the historical 6-7 years [9] Group 4: Consumer Behavior - The housing market is experiencing a divide, with high-income homeowners building wealth and low-income first-time buyers reaching a historic low age of 40 [12] - The luxury home market is expanding as housing wealth and stock market performance improve [12]