Americans Denied Home Ownership

This is getting ugly.

Mortgage rates have climbed to their highest level since 2008 reaching a whopping 5.78%. This has happening because the Federal Reserve is attempting to lower inflation across America which has been brought on by Joe Biden’s presidency.

According to Fox, the average rate for a 30-year loan jumped from 5.23% to 5.78% in just one week making it the largest jump since 1987.

Freddie Mac’s chief economist Sam Khater explained, “These higher rates are the result of a shift in expectations about inflation and the course of monetary policy. Higher mortgage rates will lead to moderation from the blistering pace of housing activity that we have experienced coming out of the pandemic, ultimately resulting in a more balanced housing market.”

15-year mortgage rates climbed to 4.81% compared to last week where it was 4.38%. One year ago, the same mortgage was just 2.24%.

This is going to make home ownership for Americans extremely difficult and now inflation has also raised costs for American household by an additional $460 per month.