Powell predicts a time when mortgages will be impossible to get in parts of US

Published On Feb 11, 2025, 2:08 PM

Jerome Powell, the Federal Reserve Chairman, warned during his recent congressional testimony that due to a growing insurance crisis exacerbated by climate change, certain regions in the U.S. may face significant challenges in accessing mortgages in the next 10 to 15 years. He highlighted that insurance companies are withdrawing from high-risk areas, making it harder for banks to provide mortgages since homeowners insurance is typically needed for loan approval. As a result, this could lead to a rising number of homeowners relying on state-backed insurers, which often provide less favorable terms. Powell also noted that addressing high housing costs primarily stems from supply issues, which are outside the Fed’s control.