Posted on 09/28/2023 10:14:22 AM PDT by Kaiser8408a
Freddie Mac’s mortgage rate is up to 7.31%, the highest level since December 2000. That means that mortgage rates are up 69% under Biden.
That is in spite of $2.5 TRILLION in agency MBS being held on The Fed’s balance sheet.
As the 10-year Treasury yield is up to 4.67%.
(Excerpt) Read more at confoundedinterest.net ...
What would be interesting is to inflation-adjust the monthly housing cost versus 2000 showing for an identical home what it will cost monthly (PITI) compared to 12/2000.
bidenomics is effectively accomplishing that for which Cloward & Piven was designed for.
...to bring down free market Capitalism through the overburdening of entitlements.
Our kid, who purchased their first house in last 2021, is embarrass because the “value” of the house as listed on the various realtor sites had dropped a lot. By mid-spring, they were down 15%. I explained with the rising mortgage rates, house values were going to drop. Lately, they’ve recovered some of it, as they are in a desirable area. Now, they are down 5%. Regardless, that 3% mortgage they are sitting on is a huge plus.
Home prices only matter during those rare times when you are buying or selling a house, unless taking equity with a HELOC is your thing, which I don’t think is a good idea if you can avoid it.
Damn, I wish I had mortgaged my house at 2.5% in 2020, and bought Exxon stock, which would be giving me a 10% dividend on that, and a 4X appreciation.
Sounds risky, sure
But that’s what Wall Street does with the Federal Reserve, and that’s why eventually, they will wind up owning EVERYTHING.
The fed is selling mortgage backed securities and bonds as fast as they can. Rates can’t help but go up. And this will kill China and they hope to hurt Russia. But I don’t think they can hurt Russia. Russia can sell resources. Russia has only one limiting resource, manpower. China has manpower.
Well, now ...
If near zero interest rates are too low, then interest rates must necessarily be increased, right?
Homes are now 44% more expensive than they were prior to the pandemic, per Redfin.
Biden’s Build back better in action.
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