As inflation continues to sit at a 40 year high, I thought you might be interested to see how the housing market is doing.
From Diana Olick’s article at cnbc.com:
Mortgage rates drove even higher last week after the Federal Reserve signaled it would continue its aggressive action to cool inflation. That, and rising uncertainty in the overall housing market, caused mortgage application volume to drop 3.7% last week compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index.
After a strange rebound the week before, applications to refinance a home loan declined 11% for the week and were 84% lower than the same week one year ago. They are now at a 22-year low because there are very few borrowers who can benefit from a refinance at today’s higher rates.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($647,200 or less) increased to 6.52% from 6.25%, with points rising to 1.15 from 0.71 (including the origination fee) for loans with a 20% down payment. That is the highest level since mid-2008.
There you go. Highest mortgage rates 14 years. Lowest number of refinance applications in 22 years. And, as noted earlier, inflation at a 40 year high.
But not to worry: Biden’s “Inflation Reduction Act” is going to save the day. The fact that most financial people feel it will do little or nothing to address inflation? Don’t listen to them, listen to Joe Biden and his merry band of puppeteers. It is sure to have a major effect on inflation…right after the midterm elections. Honest.
How much worse does this have to get before even the “at least he’s not Trump” people finally wake up and realize that Biden and his congressional cohorts have to be stopped? Will this news do it?
I guess we’ll find out in November.
