Beyond mortgage rates: How community lenders can expand access to homeownership

Housing affordability is often framed as an interest rate problem, but community lenders know the challenge runs deeper. A persistent housing supply shortage, rising upfront costs and the decline of local community mortgage lenders have combined to limit homeownership opportunities for many qualified borrowers. The Federal Home Loan Banks’ Mortgage Partnership Finance® (MPF®) Program helps expand access to homeownership through coordinated action across the housing ecosystem. Increasing construction must be paired with targeted borrower assistance, reliable community lender liquidity and financing solutions that reflect how today’s buyers and homeowners are navigating the market. Housing affordability challenge is more than rates Today’s affordability crisis is often attributed to the gap between the historically low mortgage rates available during the pandemic and today’s higher rates. However, the real challenge is the combination of rates, prices, supply and household finances. The country spent more than a decade building too few homes following the financial crisis. Demand has since caught up with that supply deficit, placing particular pressure on entry-level and workforce ho...