Well?
Ya raise the interest rates to starve off inflation and the housing marget IS gonna catch a cold…
The Commerical Housing market has already take a Covid hit…
One would assume car loans and credit card interst rates will climb….
The world has turned upside down right now….
And Joe Biden (And Democrats) IS keeping a beatdown in the polls because of it…
One of the pillars of the Biden economy is in danger of going wobbly.
Mortgage rates are surging at the fastest pace in 40 years, threatening to push homeownership out of reach for many Americans and to deprive consumers of potentially billions of dollars in spending power as the home-refinancing wave fades.
While a softening market may help tamp down skyrocketing housing prices, the rising rates mean fewer Americans will be able to build wealth through homeownership. Those who do take loans to buy a home will have less money on hand to spend elsewhere in the economy at a time when fears of a potential recession are already rising. If prices fall, builders may pull back construction — exacerbating a nationwide supply crunch.
For President Joe Biden, the risk of a housing slowdown heading into the midterms comes as the spike in inflation has already turned Americans pessimistic about the economy, even amid months of exceptional job gains and rapid wage increases.
“It’s going to do damage to the housing market for sure,” Mark Zandi, chief economist at Moody’s Analytics, said of rising rates. “Politically it just adds to the financial difficulties Americans are struggling with, and it makes things more difficult for incumbent Democrats.”….