(My new American Thinker post)
So have you talked to anyone looking for a home lately? Or someone renting? Well, check this out:
On Friday’s broadcast of “CNN This Morning,” co-host Phil Mattingly and CNN International host Julia Chatterley discussed the surge in mortgage rates and said that the skyrocketing mortgage rates have contributed to “the worst affordability crisis in housing that we’ve seen for four decades” that won’t “really change until the Federal Reserve starts to bring rates down, these things ease, people start to sell their homes, and that’s going to take some time” and that comes as rent prices remain high and are one of the stickiest inflation components.
Mattingly stated, “[M]ortgage rates in the United States have soared to their highest level in more than 20 years. Now, according to the data from Freddie Mac, the 30-year fixed rate mortgage averaged above 7% over the week ending yesterday. A year ago, just over 5%.”
Worst affordability crisis in four decades? They must be talking about those days from the early 1980s when people kept losing their homes and could not really afford another one.
I called a local real estate agent for a little real-world perspective. He works in the Dallas-Ft. Worth market where the housing situation is apparently better than other places.
I asked him one question: Why are people waiting to sell when so many are moving in from California willing to pay top price? He said that homebuyers don't want to give up their lower interest rates. They'd prefer to wait until rates drop again.
So inflation is down unless you pay rent, want to buy a home, shop for food, or put gasoline in your car. Other than that, the Inflation Reduction Act was a smashing success.
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