Bidenomics: Mortgage Rates Surge to 8% After 23 Years
OAN’s Daniel Baldwin
9:30 AM –Friday, October 20, 2023
The average rate on the 30-year fixed mortgage rate reached 8% Wednesday morning, according to Mortgage News Daily. That is the highest mark since the year of 2000.
This has come after months of rate increases. Mortgage News Daily shows that the 30-year fixed mortgage rate was below 5% as recently as last April. This jump has been coupled with bond yields rising due to interest rate hikes by the Federal Reserve.
The Fed has raised rates in an attempt to curb inflation that has plagued the Biden Administration.
Data from Freddie Mac reveals that mortgage rates have risen over the last five consecutive weeks.
This has come after the Mortgage Bankers Association (MBA), National Association of REALTORS® (NAR), and National Association of Home Builders (NAHB) penned a letter to the Fed expressing concern over its continual rate increases.
“This has exacerbated housing affordability and created additional disruptions for a real estate market that is already straining to adjust to a dramatic pullback in both mortgage origination and home sale volume,” the groups wrote.
The Trump team highlighted the difficulty of buying a home in today’s market, citing that Americans need to make more than $100,000 per year to afford a median-priced home.
A new report from ATTOM showed that homeownership expenses have become increasingly unaffordable in a staggering 79% of US counties.
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What are the implications of increasing unaffordability in US counties for homeownership and the overall stability of the real estate market
Title: Rising Mortgage Rates Reach Highest Level Since 2000
Introduction:
In a significant development for the real estate market, the average rate on the 30-year fixed mortgage reached 8% on Wednesday morning, marking the highest rate since the year 2000, according to Mortgage News Daily. This surge in rates follows several months of increases and has been accompanied by rising bond yields, primarily due to interest rate hikes by the Federal Reserve. These developments have implications for both potential homebuyers and the housing market as a whole.
Rate Increases and Impact:
The 30-year fixed mortgage rate was below 5% as recently as April this year, as reported by Mortgage News Daily. However, rapid rate escalation since then has raised concerns among industry stakeholders. To curb inflation that has impacted the Biden Administration, the Federal Reserve has implemented rate hikes. Unfortunately, these actions have contributed to the current challenges faced by the housing market.
Consecutive Weeks of Mortgage Rate Rises:
Freddie Mac’s data reveals that mortgage rates have consistently risen for the past five weeks. This trend is concerning to organizations such as the Mortgage Bankers Association (MBA), the National Association of REALTORS® (NAR), and the National Association of Home Builders (NAHB). These industry groups, expressing their concerns, collectively penned a letter to the Federal Reserve regarding the continuous rate increases.
Concerns Over Housing Affordability:
The letter from the MBA, NAR, and NAHB emphasizes how the Fed’s rate increases have exacerbated housing affordability issues. They state that these hikes have caused disruptions within the real estate market, which was already struggling to adjust to a significant drop in mortgage origination and home sale volume.
The Trump Team’s Perspective:
Highlighting the challenges faced by homebuyers in today’s market, the Trump team raised concerns about the difficulties of affording a home. They argued that Americans need to earn more than $100,000 per year to afford a median-priced home. These statements highlight the growing unaffordability of homeownership for a significant portion of the population.
Increasing Unaffordability in US Counties:
A report from ATTOM revealed that homeownership expenses have become increasingly unaffordable in 79% of US counties. This statistic underscores the pressing need to address the rising costs associated with owning a home. The affordability crisis is rapidly affecting a vast proportion of the country, making it all the more imperative to find viable solutions.
Conclusion:
The surge in mortgage rates to the highest level since 2000 raises concerns about housing affordability and the overall stability of the real estate market. With consecutive weeks of rate rises and increasing unaffordability in numerous counties, it is essential for both policymakers and industry leaders to address these challenges promptly. Recognizing the impact on potential homebuyers and the economic implications, it is crucial to find balanced solutions that address inflation concerns while ensuring accessible pathways to homeownership.
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