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Apr 15 2022

Homes Become Unaffordable Under Democrat Rule

As anyone listening to his leftist rhetoric could have predicted, every aspect of our standard of living has declined sharply since Joe Biden — or rather his handlers — took power. It isn’t just runaway inflation, a deliberately engineered energy shortage, and the ongoing supply chain issues. Consider the affordability of buying a home:

Mortgage rates hit 5% this week, the highest level since February 2011…

In the last five weeks alone, the rate has climbed 1.24 percentage points and is 1.89 points higher than at the end of last year. …

With rates jumping, potential homebuyers are seeking other ways to afford runaway home prices, with more buyers turning to adjustable-rate mortgages.

If adjustable-rate mortgages allowing people to temporarily acquire homes they cannot afford sounds familiar, you could be thinking of the 2008 financial crisis.

The share of ARM applications last week hit 7.4%, the highest share since June 2019, according to the Mortgage Bankers Association survey for the week ending April 8. Government-backed loans favored by first-time buyers and which require smaller down payments also saw an uptick.

Small down payments also featured prominently in 2008, as did the government pushing race-based home ownership, which the Biden Administration is already promoting again.

It’s not as if Democrats don’t learn from economic catastrophes. The Great Depression allowed FDR to vastly expand the government. The 2008 collapse helped Obama to power.

People who are secure in their property have less use for Marxism. The fewer young people can afford to buy homes, the longer it will take them to outgrow liberal politics.

“Higher costs and declining real wages weigh heavily on people contemplating housing choices this spring,” said George Ratiu, Realtor.com manager of economic research. “For now, many first-time buyers are still feeling the sting of sticker shock, with the mortgage payment for a median-priced home running $530 above a year ago, adding over $6,300 to the annual housing budget.”

At least you can still afford to rent, right?

Rental prices grew approximately 20% from March 2020 to March 2022, according to Realtor.com’s monthly rental report.

Well, maybe not.

No worries. If there isn’t enough money to afford the things we need, Democrats will print more and pass it out as “stimulus.”

When that only makes things worse, the regime will take the next logical step by declaring housing to be a human right — as Department of Housing and Urban Development Secretary Marcia Fudge already has.

White picket fences in suburbia are the past; the future is Cabrini-Green.

On a tip from Henry.


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