Tag Archives: mortgage payments

Bidenomics And The Cost Of Buying A House

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Although President Biden has attempted to buy votes from younger voters with his student loan bailout programs, in the process he has created inflation and interest rates that put buying a home out of reach for the very people he has tried to bribe.

On Monday, Breitbart posted an article about what has happened to monthly mortgage payments under President Biden.

The article reports:

The average monthly mortgage payment in Joe Biden’s America has soared to $3,322, per analysis from the Wall Street Journal.

That $3,322 is nearly double the average monthly mortgage payment when His Fraudulency assumed office. When former President Trump left office, the average monthly mortgage payment was $1,787.

The article includes the following Twitter post:

The article notes:

Those obnoxiously high mortgage payments are not only due to the Bidenflation caused by His Fraudulency’s lunatic government spending. There are other factors…

For those of you who vote Democrat and are currently pissing away all your money on rent because you can’t afford a home, riddle me this: What happens to the housing market when a president throws open our southern border to millions and millions of illegal aliens who need a place to live? Think hard now… Could it be that when you have a finite amount of something people want and then flood the country with millions more people who want it…? Yes, that’s right, dummies, the cost of that Something People Want explodes and that Something People Want becomes scarcer. And now you want it and can’t get it because you’re a dummy.

The second factor is this… Democrats hate single-family homes. This is why they use Climate Change to justify blocking the construction of new homes. Democrats want us all packed in cities in massive government housing complexes. By the way, they make no secret of this.

The final factor is this… This is all by design, dummies. Democrats know lunatic government spending creates lunatic inflation and that lunatic inflation destroys purchasing power and creates high interest rates that make it impossible for the middle class to purchase a home. Democrats also know that when you flood a country already dealing with a housing crisis caused by enviro-lies with millions of illegals, housing costs explode.

If you are a young American just entering the workforce full time, do yourself a favor and vote every Democrat (and RINO Republican) out of office. That is the only way you can secure your financial future.

Unfortunately, Inflation Is Still With Us

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On Thursday, Townhall posted an article about the current inflation levels.

The article reports:

Yet another inflation metric jumped in July, further debunking claims that inflation is in the rear-view mirror and reinforcing Federal Reserve Chairman Jerome Powell’s remarks earlier this month that additional interest rate hikes would be needed.

The latest Personal Consumption Expenditures (PCE) price index print released Thursday was in-line with expectations which were higher than previous reads.

Headline PCE inflation showed an increase of 3.3 percent year-over-year and Core PCE inflation — excluding volatile food and energy prices — increased 4.2 percent in the last year.

Compared to the previous release, headline and core PCE inflation increased 3.0 percent and 4.1 percent, respectively, showing that price increases continue to trend in the wrong, more expensive, direction. The July report also (again) debunks President Joe Biden’s wishful claims that inflation is “down.”

So what do higher interest rates mean for Americans?

Today’s fixed interest rate on a thirty-year mortgage is about 7 percent. If you have an $180,000 mortgage and put 10 percent down, your monthly payment at 7 percent (mortgage only) would be about $1,200. For the same down payment and loan amount, your monthly payment (mortgage only) at 3.5 percent would be about $800 (source here). That’s a difference of almost $5,000 a year. That impacts the housing market as well as the ability of young couples starting out to buy a house.

There is also the matter of payments on the national debt. As the interest rate is raised, those payments also go up.

Raising interest rates may slightly slow down inflation, but it will not solve the problem. Until someone deals with the runaway spending in Washington, we will have inflation. The other thing to note is that as the value of the dollar goes down because of inflation, payments on the national debt are made with money that is worth less than it was when the debt was incurred. The whole thing is a viscous circle where working-class Americans pay the price.