The housing market is a farce. It’s not some free-market system—it’s a government-run operation, and it’s propped up by handouts at every level. 90% of mortgages are bought by government-backed entities, repackaged into securities, then dumped into the market. The Fed? They own a third of these, distorting mortgage rates and inflating prices. This is no market; it’s a house of cards. When the government finally backs off, the crash will make 2008 look like a minor setback.
Here’s the ugly truth:
Government-backed loans control nearly 90% of new mortgages in the U.S. This isn’t the American Dream—it’s an illusion built on fake money. What was once a symbol of prosperity is now out of reach for younger generations, who are stuck watching homeownership slip further away. The government intervention has inflated prices, distorted the market, and created a bubble set to explode.
Why? It’s all driven by government policy, which was supposed to stabilize the market. Instead, it’s boosted demand and sent prices through the roof.
Let’s break down the mess:
Government Policies: Pushing more buyers into government-backed loans, inflating demand and driving prices sky-high. More people are stuck paying more than they should for a home.
Economic Downturns: The government became the only lender willing to take risks, but its grip on the market created a distorted, unsustainable system.
Low Down Payments: FHA and VA loans may look appealing, but they’re a ticking time bomb—lower down payments have only driven demand even higher, inflating prices even more.
The bottom line: The market is a sham. Housing prices are inflated, and young people are locked out. Government intervention has distorted the market, and taxpayers are on the hook for billions. This isn’t just a problem—it’s a crisis waiting to happen.
The American Dream is slipping through our fingers, and it’s only a matter of time before the bubble bursts. We need to rethink this entire system before it all falls apart.
"It looks like the mortgage systems in some European countries, are more free market than in the U.S. The mortgage system in the U.S. seems more “socialist” than the system in Denmark, Sweden, and Hungary."https://t.co/92N1M14ehs
— John Wake (@JohnWake) February 17, 2025
The number of houses delisted and taken off market (unsold) in the US has recently increased.
The housing market is asking for lower mortgage rates. pic.twitter.com/mIAyRrUYGN
— Alf (@MacroAlf) February 17, 2025
That painful moment when you drop the price below what you paid and can no longer live in denial.
“But I was told real estate only goes up,” you mutter.
Through clenched teeth you seethe, “That realtor said to buy now or be priced out forever.” pic.twitter.com/WFkhrUtWSH
— Big Bearish (@BigBearBummers) February 17, 2025
Sources:
https://www.mymoneyblog.com/percentage-of-new-mortgages-backed-by-us-government-90.html