While Americans struggle to buy groceries and fill up their gas tanks in a Joe Biden economy, the cost of other big-ticket necessities like homes and cars is also rising, and the more expensive it is for the average American. increasingly out of reach.
The Associated Press reported Thursday that the average Long-term mortgage rates rise That increase was repeated this week, marking the sixth consecutive week of such increases.
The American Dream will cost you extra in 2022. The average home buyer has lost $107,000 in purchasing power this year due to rising mortgage rates.
— Tom Wheeler (@TomWhee50376032) September 30, 2022
Mortgage giant Freddie Mac (you may remember them from the Great Depression) 30-year interest rate, the report said Mortgage loans climbed to 6.70% from 6.29% last week.
Just a year ago, the rate was 3%.
Interest rates haven’t been this high since eve of Wall Street 2007 crash.
Another thing for potential homebuyers to consider: The Federal Reserve raised interest rates last week.This is Fifth hike of the year0.75% for the third time in a row.
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Fed officials are forecasting that overall, Fed rates will rise to 4.4% by the end of the year — meaning everything that’s tailwinds will also rise.
While interest rates have historically been much higher (see: 1980s), near-zero interest rates for much of the past 20 years have lured many into a false sense of security.
You ignore the part about the U.S. “rescue” package that has led to record inflation, a recession and still-climbing high mortgage rates.
– Brick Suit (@Brick_Suit) September 24, 2022
Need a car?Think again
If you’re in the used car market, you’re probably no better off than a home buyer.Higher prices and the same interest rate predicament is also bother car buyers.
CarMax, the nation’s largest used-car dealership, reported a 54% drop in earnings and a 6.4% decline in total sales.
Anyone looking for a used car over the past two years has undoubtedly seen incredible price increases, up 48% since 2019.
CarMax reports, average In the past three months, the price of a used car was $28,657. average! Consider, the median income US is $37,500 – Building a car is almost a full year’s salary.
— SoftMachine (@harley_super) September 30, 2022
Inflation is not going away anytime soon
Earlier this month, as Democrats cheered the passage of the Reducing Inflation Act, The latest numbers come in.
On the same day, the Consumer Price Index (CPI) showed inflation at 8.3%, which was bad enough.
But that’s not the whole story.
inflation even worse than reported.
So far, there are no signs that any of the above will improve in the near future.
The middle class is squeezed. It has become almost impossible to pay the current median house and car prices with a median wage. Dangerous trends have become too many people’s nightmares. must be resolved as soon as possible.
— ⛳️ (@iCharlieSoles) July 5, 2022
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