Staff Reports
The mortgage rates are skyrocketing, and it’s causing a real ruckus. Hardworking Americans are feeling the sting as house prices soar to record highs. Retirees are struggling to sell their homes and downsize, and it’s clear that the Biden administration has been twiddling their thumbs instead of tackling this housing crisis head-on.
The Washington Examiner is diving deep into this dilemma with their Home Economics series. They’re not holding back! In part one of their four-part series, they’re shining a spotlight on the risk the housing crisis poses to President Joe Biden’s chances of snagging a second term in the Oval Office. Oh boy, Biden might want to start sweating now!
Hard-working Americans are struggling to afford homes thanks to #Bidenomics.https://t.co/ok5KX4nBTR
— Rick Scott (@ScottforFlorida) December 4, 2023
Mortgages are bursting at the seams! Since 2020, everything has skyrocketed in price, but the mortgage rates have really taken the cake. And with the 2024 presidential race creeping closer, housing affordability is shaping up to be a major player in the economic game. This issue hits close to home for Americans, who see themselves as living in a land of opportunity and prosperity.
Enter former President Donald Trump, who’s been gobbling up the attention. He’s sounding the alarm, pointing out that things were a whole lot sunnier when he was steering the ship. According to him, back in the days of his administration, the 30-year mortgage rates hit a record low of 2.65 percent. But now, thanks to Biden’s bungled economy, interest rates have shot through the roof, putting the dream of homeownership out of reach for too many Americans. Yikes!
And let’s talk numbers. The mortgage rates have taken a nosedive from around 3% at the beginning of last year to a whopping 8% in recent weeks. That’s a gut punch for anyone trying to buy a home. And every 1% rise in interest rates means an extra $5,000 out of your pocket annually on a $500,000 mortgage. Ouch!
Biden has been chattering about his economic prowess, bragging about strong GDP growth, low unemployment, and falling inflation rates. But when it comes to mortgage rates, it’s crickets from the Biden camp. It seems like the current administration has been focusing more on battling “junk fees,” high gas prices, and student loan payments. The Whole Foods crowd might be pleased, but what about the everyday Americans trying to put a roof over their heads?
The housing market mess is hitting younger voters, too. They’re the ones trying to buy their first homes to build their nest eggs and start their families. But with the steep climb in rates, even existing homeowners are holding off on selling, keeping prices sky-high for the few homes that are up for grabs.
The Dems might be in hot water with this one. Biden’s economic approval rating is nose-diving, and with younger voters feeling the squeeze, the Democrats could be in for a rough ride. Trump is already trying to cash in on the anxiety, pointing out that more young people are delaying getting hitched and having kiddos due to the current economic quagmire.
The blame game is in full swing, with Republicans pointing fingers at Biden’s big spending, like the $1.9 trillion American Rescue Plan. But even if inflation peters out, the housing market might take its sweet time bouncing back. It’s like trying to herd cats!
But wait, there’s more! The housing nightmare isn’t just haunting America. Up north, Canadian conservatives are tearing into Prime Minister Justin Trudeau over their own housing hullabaloo. It’s chaos across the continent!
The Biden administration hasn’t done much more than throw a couple of pebbles at the housing crisis. They’ve given local governments some incentives to relax zoning restrictions, but that’s about it. The Biden campaign didn’t even bother to toss a bone to the hungry hounds at the Washington Examiner when asked for a comment. Tsk, tsk.
Biden may say he won’t meddle with the Fed to lower interest rates, but he’s been sticking his fingers in other pies, like trying to tweak gas prices and student loan payments. After the Supreme Court put the kibosh on his $400 billion student loan forgiveness plan, he’s been dipping into the Strategic Petroleum Reserve to tamp down those pesky gas prices. It’s like a game of whack-a-mole!
Now, let’s not forget our neighbors to the north. In Canada, housing affordability hit rock bottom, dating all the way back to 1989. Talk about a tough pill to swallow!
So, what’s the forecast for 2024? George Washington University’s real estate bigwig, Robert Van Order, thinks that mortgage rates will be a hot topic. Homeowners vote, after all. But he doesn’t see it as a top concern. Hey, time will tell!
