Joe Biden did it, folks!
He saved the Republicans from the Ultra MAGA Gang and Orange Hitler, he lowered inflation with a wave of his hand, he stopped all need for fossil fuels by taking a ride in a Cadillac at a Detroit car show, and he beat climate change by yelling at the sky.
Which is why, dear citizen, you should be proud that we are returning to the economic conditions of the first recession he oversaw with his buddy, Barack.
Mortgage rates climbed above 6 percent this week, their highest point since late 2008 and more than double their level a year ago, further squeezing the budgets of would-be home buyers.
The average rate on a 30-year fixed-rate mortgage was 6.02 percent as of Thursday, Freddie Mac reported, up from 5.89 percent the week before. The average rate for an identical loan was 2.86 percent the same week in 2021.
"Mortgage rates continued to rise alongside hotter-than-expected inflation numbers this week," Sam Khater, Freddie Mac's chief economist, said in a statement, adding that the rate increase would help cool off the red-hot housing market, but that the number of homes for sale was still inadequate to meet demand. "This indicates that while home price declines will likely continue, they should not be large," he said.
The New York Times made this handy chart to show us our wonderful trajectory:
That might not look so bad compared to the '80s, but I should remind you that the average American could buy a house for $45,000 or so back then (equivalent to about $100,000 today). The interest rates were still killer, but those principals were MUCH lower.
Oh, and real wages hasn't really changed much in the last 30 years so that's fun.
Oh, and the inflation of the '80s was caused by the same kind of spending and stagflation that Biden is creating.
With inflation remaining stubbornly high in August, the Fed is expected to raise the federal funds rate again when it meets next week.
"Stubbornly high."
The NYT is baffled.
Who could have predicted it? Those stubborn inflation rates!
"Further increases in mortgage rates, beyond 6 percent, on a 30-year fixed rate mortgage, will exacerbate affordability challenges."
You know who needs new homes the most?
Young people who want to start or have started families.
You know who needs them the least?
Empty nesters and people without kids.
Guess which group can afford homes right now.
Anyway, we are continuing to build back better and if your five kids have to share a bedroom because you foolishly thought your leaders would handle our nation's money properly, tough luck!
What are you having so many kids for, anyway?
It's not like we've been below the population replacement rate for decades and desperately need kids to keep our economy and country from collapsing!
P.S. Now check out our latest video 👇
