This has created a two-tier housing market—those who can buy houses with their own cash and those who cannot.
This increases wealth inequality—exactly the opposite of what the Democrats claim they want.
Create a “crisis.” Then act like a hero when you ride in to “fix” it.
DemocRAT playbook.
Biden & CO destroying the economy one step at a time, setting the stage for the replacement population which has no stake in the US economy and will take what ever they are given and be grateful, while the rest of us fight for a place in some homeless shelter our savings wiped out, our property, our homes sold to pay the bills.
If you have high inflation, it follows you will have high interest rates.
and all of this was done by liberals to fight Covid. I think most of the people running for office in the midterms didn’t push this hard enough.
All of this mess is liberals fault! All of this is due to how liberals reacted to Covid!
And the idiot fed based their decision on fake unemployment data from BLS.
It’s really zero job growth over last 5 months.
Blame Congress, for changing their mandate from fighting inflation to doing that, AND keep unemployment low. Now gov weinies can game the unemployment rate and tank our economy via the idiot Fed.
Like they just did.
Major crash coming.
Home costs will come down...
We have had such low rates for so long, that the price of 3% mortages are baked into home prices...
Now that rates are 6-7%, (more than double, but historically not really that bad).. the monthly payments do not buy the same amount of house... a $1000 mortgage payment at 3% buys you a 240k house ... a $1000 mortgage payment at 6% buys you are 170k house.
Housing prices have this 70k of cheap money baked in and sellers are slow to lower their prices to what the market will truly cover. However it will happen... just takes time.
Its not like people don’t want to buy a home, but the pool of buyers who could afford a 240k home 2 years ago is not sitting at being able to buy 170k homes... and those 240k homes sold a few years back are under water if they need to sell now, so are slow to lower their price.
The market will adjust but it will take time... Approximately 20 years of insanely cheap money, has come to an end.
“The higher rates, coupled with a surge in home values during the pandemic, pushed the monthly mortgage payment on a median-priced house to more than $2,000, up from about $1,100 just before Covid-19 hit.”
Transitory.
Let’s Go, Brandon! *SPIT*
My Mom has a 3-bedroom ranch on a small-ish lot in a no-longer ‘good’ neighborhood in the town where I grew up. She just had it appraised. A local Realtor told her she can get $300K for it. Surreal.
Americans are spoiled rotten babies.
They will have to do as all of who bought homes back in the days with high interest rates. I remember paying 12% for our first home.
Instead of the $450k starter with the home theater in the completed basment and the she shed in the backyard they will have to buy the $300k home with the bare concrete walled basement, fix it up sell it for a profit and move up.
Carter’s were higher but Joe still has time.
I’m an aging boomer. I remember double digit inflation, double digit mortgage rates, energy shortages, wage and price controls, foreign policy disasters, crappy vehicles. Fasten your seat belts. The voters and those they have elected are taking us back to the seventies.
The same people howling about high interest rates were fat & happy when FED kept rates way below real inflation for years and years.
It’s all part of the plan to dumb down America and slow it’s effectiveness mainly the economy so we can absorb all the Illegal’s crossing the boarder.
Artificially low mortgage rates are what pushed home prices so insanely high in the first place!
Some could argue that this is a needed correction that can hopefully make home prices fall in line with historical norms, so that people can actually put enough cash as a percentage down, so that they have a significant stake of equity. The last 20 years we’ve been selling houses as glorified rentals for most people.
Not having a PHD in economics, I am not bound by the official dogma. So I ask the question: “How does raising the price for borrowing money make overall prices go down?”
It is supposed to raise the price for businesses to borrow money in order to expand their business, or for newcomers to start a business. By throttling business formation, growth and expansion, it is allegedly going to keep the price of a loaf of bread from going to $8.00.
By stifling businesses it’s supposed to reverse the upward trend of prices? Not buying it!
The cause of monetary inflation is government issuing dollars based on nothing but the “good faith and trust of the government” (which is equal to zero).
The cure for inflation is to stop spending money like a drunken mentally feeble old communist and to stop the printing presses at the Treasury.
I want to know how in the hell Bite-me is popping 54% approval.
That’s it in a nutshell. Actually it’s much more than energy policy, but generally the problem is conflicting policies between the Biden Administration and The Fed. Until there is a change the economy will remain in the dumpster.
I was talking with my buddy who is a retired LEO and now does construction, He told me a square foot of cedar shaking (composite for siding) is well over $200. That’s insane.