Economists say Fed is running out of housing options

The Federal Reserve is running out of options to help the housing market, and it’s time lawmakers step-up and do more, according to a paper by top economists presented at the U.S. Monetary Policy Forum.

Federal Reserve officials, members of foreign central banks, and economists discussed how the housing market continues to hamper overall economic recovery. The Fed has already lowered its key interest rate to near zero and mortgage rates are already at all-time lows, which are helping refinancers and home purchasers lock in big savings.

However, the overhang in the housing market “may not be easily addressed by monetary policy,” Michael Feroli, chief U.S. economist at JPMorgan Chase, said during the meetings.

Some economists said there’s still more the Fed can do: Lower the interest rates even more.

However, some note that with more stringent lending standards those who can qualify for refinancing likely already have, so lowering the rate may not have that much impact.