The Federal Reserve’s latest meeting minutes revealed concerns about the housing market, which has been slowing down. Policymakers noted a decline in residential investment and a weakening in housing demand, with falling house prices. These worries, along with other risks, could impact rate decisions and influence mortgage rates.

Fresh data showed that the housing market remains stagnant, with existing home sales rising in July but remaining flat for most of the year. Elevated borrowing costs have kept buyers on the sidelines, leading to weak demand and suppressed home prices. Construction of new single-family homes also remains slow, with building permits declining in six out of seven months this year.

Chairman Jerome Powell hinted at a potential rate cut in September, following a more hawkish stance. Analysts predict that home prices may remain subdued in the coming months, with further softening expected in housing activity due to high mortgage rates and prices. The NAHB homebuilder confidence index fell in August, reflecting the industry’s challenges.

Read more at Yahoo Finance: The Fed is starting to worry about the housing market now