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The housing market is also under scrutiny, with the Federal Housing Administration potentially facing significant workforce reductions, amid speculation regarding layoffs. The FHA plays a vital role in providing mortgage insurance for low-income families, and any significant staff cuts could impede access to mortgage loans, particularly for first-time homebuyers.
Additionally, Chief Economist Danielle Hale from Realtor.com highlighted a decrease in U.S. housing starts due to builders pulling back amid concerns over mortgage rates and affordability challenges. She pointed out that while inventory levels are rising due to increased completions, ongoing uncertainty is causing builders to adopt a cautious stance.