They say a man’s home is his castle, but the way things are going, a home WILL cost as much as a castle. U.S. mortgage rates have hit their highest level in over two decades.
Joe Biden’s economic policies are making it harder for Americans to deal with the many economic crises. Gas prices are rising, and mortgage rates are high.
The Western Journal reported the mortgage rate rose for the fourth consecutive week at the end of September. This resulted in hundreds of dollars extra and the highest rates since December 2000.
The average rate a few years ago was 6.66%. In the past few years, the average rate was 6.66 %. A 30-year loan’s average rate was only 2.99% two years ago. The rates have doubled.
The Journal also mentioned another popular refinancing option: the 15-year mortgage fixed rate. The borrowing costs for these mortgages are now 6.78%. This is up from 6.72% one week ago and 5.90% a year ago.
Borrowers can be charged hundreds of dollars a month for these rates, which makes it difficult to purchase a home in a market that many Americans are already unable to afford. These high rates deter homeowners, even when they have locked in their lowest rates from two years ago.
Low inventory and high rates have combined to push home prices near records. Sales of previously owned U.S. homes have fallen 21% between the first eight months of 2018 and the same period of 2022.
The Western Journal reported the Mortgage Bankers Association’s statement that home loan applications have plummeted almost 30% since 1995. The August median home loan payment was $2,170. This is up 18% from the previous year.
Bidenomics is making it impossible to afford to buy a home. Rent also increased in September, according to USA Today.
Western Journal:
The central bank announced last month that they may not cut rates as much as expected in the coming year.
Treasury yields reached a level not seen in over a decade on Tuesday. It was the highest yield in the past seven years. However, the yield has now eased to 4.71% at Thursday’s midday.
At the start of the pandemic, the mortgage rate was 3.5%. It dropped to 0.50% after that.
Western Journal quoted Freddie Mac chief economist Sam Khater. Khater said that “multiple variables, including shifts in the inflation and job market, as well as uncertainty regarding the Federal Reserve’s next move, contributed to the highest rate of mortgage in a decade.” This has been a factor in reducing homebuyer demand.
The “Build Back Better” scheme, as it is called by many, has been nothing more than a scam.
