The news: Federal Reserve Chairman Jerome Powell warned that some areas in the US may become ineligible for mortgages in 10 to 15 years due to escalating insurance challenges, per Yahoo Finance.
How we got here: Banks and insurance companies are scaling back certain offerings in high-risk areas, particularly coastal and wildfire-prone regions, as climate change leads to more frequent and costly natural disasters.
And because mortgages generally require homeowners to acquire home insurance, the number of new homeowners in these regions will decline over time.