The Federal Reserve’s failure to acknowledge the inflationary impact of soaring home prices and its interest rate policies have created a housing market crisis with significant affordability challenges for many Americans.
Is this a joke? pic.twitter.com/f3it1Xv6Hg
— Cernovich (@Cernovich) October 5, 2023
Clearly, they don't want people buying homes.
— Dr Vincent Sativa 🇺🇸 (@The_Weed_Shop) October 5, 2023
You will own nothing and be happy, guys. Just relax. 🙃
— Syzmon Thomas (@ThomasSzymon) October 5, 2023
BREAKING: Housing affordability is the worst on record, per the National Association of Realtors. pic.twitter.com/iTypFJlk7s
— unusual_whales (@unusual_whales) October 5, 2023
The cost to buy a #house is now at a historic record relative to #renting.
This is entirely a function of 13-years of the #Feds interventions AND the drive by #mortgage lenders to give loans to anyone who can fog a mirror.
h/t @VisualCap pic.twitter.com/EaZtfUao2R— Lance Roberts (@LanceRoberts) October 5, 2023
BREAKING: Average interest rate on a 30-year mortgage rises to 7.88%, its highest since September 2000.
Since December 2020, the average rate on a 30-year mortgage has officially tripled, from 2.60%.
The 10-year note yield is now up ~50 basis points since the September Fed… pic.twitter.com/pM5fFWmN7n
— The Kobeissi Letter (@KobeissiLetter) October 4, 2023
Assuming a $3,000 monthly budget…
-2.65% mortgage rate in Jan 2021 could have bought you a home worth $641k.
-7.49% mortgage rate today could buy you a home worth $426k.
That's a $215k (34%) decline in purchasing power. pic.twitter.com/whVJPnUr6l
— Charlie Bilello (@charliebilello) October 5, 2023
Mortgage demand is now at its lowest since 1995 as rates continues to skyrocket.
The average interest rate on 30-year mortgage just hit its highest since August 2000, at 7.88%.
Mortgage demand is even below the average levels seen in the 2008 crisis, as shown in red below.… pic.twitter.com/KzBH338xjK
— The Kobeissi Letter (@KobeissiLetter) October 5, 2023
A $400,000 house now costs over $1,000,000, with interest rates now at 7% from 3%
A $400,000 house now costs over $1,000,000, with interest rates now at 7% from 3% pic.twitter.com/CUidecigEd
— Wall Street Silver (@WallStreetSilv) October 5, 2023
How the Fed Destroyed the Housing Market and Created Inflation
The Fed’s oversight in not equating rising home prices with inflation has resulted in a distorted housing market. Despite wages rising, home prices have surged disproportionately, making them about 46% overpriced. The massive QE rounds by the Fed, intending to stimulate inflation, suppressed interest rates, leading to a housing market affordability divide: winners who refinanced at low rates and potential buyers priced out. With mortgage rates nearing 8%, the housing market is paralyzed. Simultaneously, rent has continuously increased, affecting 34% of the nation. The Fed’s inability to foresee these repercussions, combined with policies promoting inflation, suggests a bleak outlook.
How The Fed Destroyed The Housing Market And Created Inflation In Pictures t.co/rSTM5dkkdq
— zerohedge (@zerohedge) October 5, 2023
h/t BFD