Powell: Housing market faces 'significant challenges'

Housing Market Challenges - Housing supply is low [1] - Many people have very low mortgage rates from the pandemic period, making it expensive to move [1][2] - The country hasn't built enough housing for a long time, leading to a housing shortage [2] - A 25 basis point (0.25%) decline in the federal funds rate may not significantly impact the housing market [1] Structural Issues - The industry lacks the tools to address a secular or structural housing shortage beyond adjusting interest rates [2] - The industry needs more housing of different kinds [2]