Powell: The Federal Reserve cannot control the direction of mortgage rates.

Federal Reserve Chairman Powell was asked on Wednesday afternoon why Americans should endure mortgage rates of around 7%. Powell pointed out in response that the Federal Reserve cannot control the direction of mortgage rates - the federal funds rate directly affects some savings and lending rates, but mortgage rates are more closely tied to the 10-year U.S. Treasury yield. President Trump said on his social media platform on Wednesday that the Federal Reserve should "allow people to buy homes and refinance!" However, even if the Fed cuts rates, this will not be a panacea for solving the housing market issues. Since the subprime mortgage crisis, the United States has faced a long-term shortage of housing supply. With rising construction material costs, coupled with the expulsion of foreign workers who make up a key part of the industry's workforce, the shortage of housing inventory has become more severe. It is also worth noting that after the Federal Reserve started cutting rates last year, mortgage rates did not decrease, but instead rose slightly.