The article discusses the urgent focus on tax policy, which takes precedence over the potential release of Fannie Mae and Freddie Mac from government conservatorship. HUD Secretary Scott Turner highlighted that any removal efforts hinge on the assessment of long-term mortgage rate impacts, which remain elevated due to persistent inflation. Stakeholder collaboration is essential, with Congress and the Treasury involved. Mortgage rates are forecasted to stay between 6.5% and 7% this year, emphasizing the housing market's challenges amid ongoing economic pressures, with a comprehensive tax bill not expected until later in the year.
The priority for a Fannie and Freddie release is currently contingent on any indications that mortgage rates might increase, as they will affect long-term rates.
HUD Secretary Scott Turner emphasized that removing government-sponsored enterprises from conservatorship is an administration priority and involves collaboration with various stakeholders.
Current elevated mortgage rates and continued inflation above the Fed's target have pressured the housing sector, with forecasts suggesting rates may remain high through the year.
While a complete tax bill is anticipated later in the year, the urgency around tax policy is currently overshadowing discussions on housing finance reforms.
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