The president loves that inflation is out of control, and people are paying double for consumables that were affordable just one year ago. The old man’s reluctance to work on the problem now affects things that will take years to recover if there is a reversal of growth. And the one sector of the economy that will be affected the most is the housing market.
The housing market is in full swing as more people seek to buy or build a home. But that desire is quickly diminishing as prices climb higher and higher. The higher inflation and prices rise mean the Federal Reserve will raise interest rates to help keep inflation from getting out of control.
The effect that Biden’s inflation is having is keeping people from seeking out mortgages. The low-interest rates of just one year ago were enough to motivate people to refinance existing mortgages or apply for new ones. But now that the interest rates have soared to new heights, people are waiting to see if things will turn around.
Mortgage rates are constantly changing. CNBC reports that a mortgage application has dipped 14 percent in the past year. But in recent months, the rates have climbed to higher levels. Joe Biden claims that he wants to build up America, but everything he has touched has shriveled up and died so far.
People are concerned about where the country is headed. The Democrats do not care about the economy. All they care about is what they can get by changing things. The midterm elections cannot arrive fast enough so the people can put an end to Joe Biden’s destructive reign.
Joel Kan is an MBA economist. He stated, “Mortgage rates fell for the fourth time in five weeks, as concerns of weaker economic growth and the recent stock market sell-off drove Treasury yields lower. The country is headed for disaster with Biden at the helm. Demand is high at the upper end of the market, and the supply and affordability challenges are not as detrimental to these borrowers as they are to first-time buyers.”
The country is experiencing a housing market boom, given the prosperity experienced when Donald Trump was in office. The current demand for new homes remains high but is quickly changing the longer that interest remains high.
Part of the problem plaguing the booming market is that people no longer have the disposable income to put on a down payment required for a new purchase. Biden’s high prices have sucked up the extra income people were counting on to buy a new home.
The price of buying a new home has also been on the rise. Higher home prices are suitable for the sellers but not for the buyer. The rise in construction material costs is outpacing the value of certain homes. Buyers are cautious because they do not want to get into a home and immediately turn down the value to loan ratio.
CNBC reported that “Applications to refinance a home loan, which are more sensitive to rate moves than purchase applications, fell 5% for the week and were 75% lower than the same week one year ago. Even as rates moved off their highs over the past few weeks, refinance demand hasn’t come back because so many borrowers already went through the process when rates were sitting at record lows last year.”
People will not start applying for new housing loans until the interest rates drop to new lows. Buyers know that as long as Biden remains in office, there’s a greater risk that the economy will move into a recession.
There’s a significant danger awaiting the country while Biden lounges in the Oval Office. The country is headed for a recession as the higher inflation climbs. The nation’s billionaires are losing massive amounts of capital, which is a clear sign that the economy’s health is not well. Biden may think everything is fine, but the facts tell a very different story.