Simply unaffordable! US housing, that is. As The Federal Reserve tries to fight inflation caused by Biden’s Medusa-like policies, mortgage rates are soaring and we are seeing an INCREASE in mortgage purchase applications ahead of Fed tightening. Panic in (Fed) Needle Park!
Mortgage applications increased 2.5 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending April 29, 2022.
The Refinance Index increased 0.2 percent from the previous week and was 71 percent lower than the same week one year ago.
The seasonally adjusted Purchase Index increased 4 percent from one week earlier. The unadjusted Purchase Index increased 5 percent compared with the previous week and was 11 percent lower than the same week one year ago.
Adjustable rate mortgage (ARM) share has risen to 9.3% along with mortgage rates.
Between Biden’s energy policies, Congressional Covid relief and seemingly perpetual monetary stimulus from The Fed, we have 20% growth in home prices despite mortgage rates soaring.
And as The Fed is expected to tighten, mortgage rates hit 5.50%.
Is the US housing market addicted to gov? We will find out if and when The Federal Reserve actually tightens monetary policy.