US housing is getting simply unaffordable.
US mortgage rates are soaring, US home prices are soaring, The Fed’s balance sheet is still growing, and US average hourly earnings are growing at a fraction of home price growth.
The unafforable nature of US housing prices is similar to that of 2005-2007 when home price growth greatly exceeded wage growth.
Another side effect of soaring mortgage rates: MBA refinancing applications plunged 14.37% from the preceding week.
Let’s see if The Fed actually tries to extinguish the affordability fire.
5 thoughts on “Simply Unaffordable! Soaring US Home Prices + Soaring Mortgage Rates + DECLINING Real Wages Makes US Housing Unaffordable For Millions (MBA Refi Applications Drop 14.37% From Preceding Week)”
The problem isn’t that the markets have changed or that wages have stagnated or dropped. The problem is that people want what they are unwilling to work for. Fair has nothing to do with life.
Housing isn’t unaffordable. You can rent an apartment quite easily and quite cheaply. Sometimes you have to make sacrifices to get what you want. For example, stop partying with your friends every weekend to save more cash (been there, done that in my 20s.) Its part of what is called growing up. Becoming an adult means learning to make good decisions instead of always seeking the fun in life.
And yeah, Brandon needs to go, and all leftists need to diaf, but that doesn’t change how the world works. People rent and sell housing for a reason and accommodating your wants and needs is NEVER part of that reason.
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