Mortgage Rates Are Higher Than They’ve Been Since 2008

Days ago, Joe Biden told the media he wasn’t concerned about growing inflation. He even went as far as saying Americans “would be fine” economically.

Sadly, this is not the case. For starters, more Americans are being laid off from their jobs as companies try to cut their expenses.

Secondly, interest rates are continuing to rise, with the Federal Reserve claiming this is designed to lower inflation. Ironically, inflation’s been consistently rising, despite multiple interest rate hikes.

Though this is only the tip of the iceberg of economic problems facing America. Today, mortgage rates have climbed at a rate not seen in about 12 years.

What to Know About Mortgage Rates in America
Because the Federal Reserve is constantly moving up interest rates, mortgage costs are being affected. This is why a more than 6% rise in mortgage rates has taken place this year.

Today, the standard mortgage cost hovers at around $2,350, but in 2021, the typical mortgage cost was a little over $1,410. This has been impacted by not just the uptick in mortgage rates, but also in inflation.

Mortgage rate increases likewise come amid growing costs of mortgage insurance, homeowner’s insurance, and even property taxes. At the rate things are going, all costs associated with homeownership are going to keep rising.

If prices keep rising as expected, the housing market will suffer as many people are priced out of it. With job security also on the line, fewer people may be willing to take on the financial risks associated with homeownership.

This means more individuals will turn towards renting. Though a higher demand for rentals will also increase prices in this arena as well. Similarly to mortgage rates, rent costs have already been documented to be directly impacted by inflation.

Americans Are Not “Fine”
Mortgage rates over a 30-year timeframe are nearly three times more costly under Biden than they were when former President Trump was in office.

The growing number of Americans who will be house poor or unable to keep up with housing expenses poses major problems for the country. Yet, the White House just finished celebrating the recent passing of the Inflation Reduction Act.

Economists already warned this new law will increase the costs Americans pay, at least over the next few years. Mortgage rates and rental expenses are no exception, either.