Build Back Better? Mortgage Rates Hit 20-Year High

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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.





In Joe Biden‘s economy, Americans are finding it harder and harder to deal with the slew of economic crises. From spiking inflation to rising gas prices to high mortgage rates, “Bidenomics” is draining Americans dry.

The end of September saw the fourth consecutive week of rising mortgage rates, representing hundreds of dollars in extra costs and the highest rates since December 2000, The Western Journal reported on Oct. 5.

The Journal cited mortgage buyer Freddie Mac to state that the “average rate on the benchmark 30-year home loan rose to 7.49% from 7.31% last week.” In contrast, the average rate a year ago was 6.66%. Not only that, but, two years ago, the average rate on a 30-year mortgage was only 2.99%. There’s been more than a doubling in rates.

The Journal also mentioned a popular option for homeowners who refinance home loans, namely the 15-year fixed-rate mortgage. The borrowing costs on these mortgages went up to 6.78% from 6.72% the week before — and from 5.90% a year ago.

High rates can add hundreds of dollars a month in costs for borrowers, limiting how much they can afford in a market already out of reach for many Americans. They also discourage homeowners who locked in rock-bottom rates two years ago from selling…

The combination of elevated rates and low home inventory has worsened the affordability crunch by keeping home prices near all-time highs even as sales of previously occupied U.S. homes have fallen 21% through the first eight months of this year versus the same stretch in 2022.





In fact, the Western Journal cited the Mortgage Bankers Association to state that home loan applications plummeted to the lowest level since 1995 — almost 30 years. But the listed home loan application median monthly payment went up 18% from the previous year as of August, at $2,170.

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 has already pulled its main interest rate to the highest level since 2001 in hopes of extinguishing high inflation, and it indicated last month it may cut rates by less next year than earlier expected.

The threat of higher rates for longer has pushed Treasury yields to heights unseen in more than a decade. On Tuesday, the yield on the 10-year Treasury jumped to 4.80%, its highest level since 2007. It has since eased back and was at 4.71% in midday trading Thursday.

It was at roughly 3.50% in May and just 0.50% early in the pandemic…While mortgage rates don’t necessarily mirror the Fed’s rate increases, they tend to track the yield on the 10-year Treasury note.





Western Journal quoted Freddie Mac chief economist Sam Khater. “Several factors, including shifts in inflation, the job market and uncertainty around the Federal Reserve’s next move, are contributing to the highest mortgage rates in a generation,” Khater said. “Unsurprisingly, this is pulling back homebuyer demand.”

”Build Back Better” is and always was a total fraud.




Source
Las Vegas News Magazine

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