Economy

But the rapid drop could be enhancing the volatility that is keeping buyers out of the market, Freddie Mac said.

However, the downturn will be brief and housing will lead the way out, the government-sponsored enterprise concluded.

One week following the Consumer Price Index data release, the 30-year fixed rate loan is 47 basis points lower, while the 15-year is down 40 basis points, Freddie Mac said.

A heated panel discussion sponsored by the Federal Housing Finance Agency raised questions about the funding, structure and mission of the Home Loan banks.

The Federal Housing Finance Agency is reducing the amount lenders can sell to a government-sponsored enterprise by $3 billion next year.

An inflation metric came in lower than expected, which caused the benchmark 10-year Treasury to drop well below the 4% mark.

The limit for high-cost areas for 2023, 50 percent above the baseline limit, would be approximately $1.08 million, writes a former principal economist with the Federal Housing Finance Agency.

Following the latest Federal Reserve boost in short-term rates, industry and other observers are anticipating more volatility to affect home loan financing.

A growing number of economists and lawmakers think the Fed has gone too far in its battle against inflation. Powell is worried it hasn't gone far enough.