In boasting about Bidenomics two weeks ago in Milwaukee, President Joe Biden declared that his policies are “restoring the American dream.” Then he went into his creepy whispering mode and assured us “it’s working.”
Huh?
Isn’t a big aspiration of the American dream owning a home? Biden keeps making first-time homeownership harder for young families for two reasons. One is that the overall jump in inflation and the slower increase in wages and salaries means that homes are more expensive. High home prices benefit those who already own their homes, but much of the increased value is due to general inflation, which reached a high of 9% last year and hurts everyone.
A bigger killer for first-time homebuyers has been the steady rise in mortgage rates under Biden. When he came into office, the mortgage rate was 2.9% nationally. Now it is 7.1%, thanks in no small part to the Federal Reserve’s 11 interest rate increases prompted by the $6 trillion Biden spending and borrowing spree in 2021 and 2022.
So now, according to the mortgage company Redfin, just the increase in interest rates on a 30-year mortgage from 5% to 7% means that a middle-income family that could once afford a median-value home of $500,000 can only afford a home worth $429,000. Great, spend more and you get less house. Or instead of a single-family home, you can only afford a three-room condo or a townhouse. If we compare the rates today versus when Donald Trump was president, the typical homebuyer can only afford a house with a price tag more than $100,000 less than three years ago.
What a deal? Maybe this is one reason the size of a new home is smaller than in the past.
Here’s another way to think about the damage done by Biden policies: If you want to buy a $500,000 home today, which is close to the median price in many desirable locations, your total interest payments will be at least $800 more per month. That means over three decades of payments totaling at least $250,000.
Of course, rents are up nearly 20% as well, so for many 20-somethings, this means sleeping in the parents’ basement.
Biden talks a lot about bridging gaps between rich and poor and blacks and whites. But the group that is most handicapped by these interest rate shocks is minorities. Black homeownership is still less than 50% for black households. The Washington Post calls this “heartbreaking,” but they blame racism, not bad government policies.
There’s one other impediment to homeownership for Generation X and millennials. Many 30- and 40-something’s are hamstrung by their existing and expanding debt. Credit card debt is now $1.03 trillion. Half of all families are expected to have problems paying off this debt each month. Delinquencies are rising, which can mean penalty rates of 20% to 25%.
So, if families can’t afford their existing debt, how will they get a bank to approve a $400,000 or more mortgage loan?
An even bigger question is how in the world can Biden call his economic policies a success?
Perhaps Biden has a secret plan to “forgive” trillions of dollars of mortgage debt, as he has already attempted to do with student loans. But that just shifts the debt burden to taxpayers – hardly a solution.
The Biden administration’s assault on homeownership isn’t just harmful to the families that are being priced out of the market. It’s bad for communities and cities around the country. When families become homeowners and set roots in a town, they are much more prone to care about not just improving their own house and maintaining the upkeep and mowing the lawn and trimming the hedges, but it gives them a stake in the schools and children in the neighborhood and the quality of the public services. In other words, homeownership gives Americans a sense of Tocquevillian civic pride.
Crime is lower, neighbors are friendlier and everyone’s property values rise when they live in a community of owners, not renters.
There is one reason to feel today’s downward spiral can be reversed. Back in 1980 when Jimmy Carter was president, mortgage rates weren’t 7%; they reached above 17%. Voters rebelled against the economic mayhem and chased Carter out of office. Ronald Reagan came into the White House, and with wiser economic fiscal policies, mortgage rates quickly fell in half and then lower still. It can happen again.
Stephen Moore is a senior fellow at the Heritage Foundation and a chief economist at FreedomWorks. He is the co-author of the “Trumponomics: Inside the America First Plan to Revive Our Economy.”
Reprinted with Permission from CFIF.org – By Stephen Moore
Everything Biden is doing on behalf of the people that are really running the show behind the scenes is designed to lower the general quality of life of the American people, so we are more in-line with the rest of the world. Remember, everything that makes America exceptional has to be destroyed one way or another to achieve universal equity and social justice. Everything that provides opportunity for individual growth and improvement has to be stripped away, so the masses are as reliant on the government for nearly everything as is the rest of the world. Look at the entirety of what the Democrats are doing, rather than just the individual pieces. Reshaping societies is NOT done by singular events, but rather by the accumulated value of multiple events that lead to a reordering of societal norms over time.
Higher interest rates are the direct result of massive federal spending and borrowing that created huge imbalances in the economy. Higher mortgage rates are simply one facet that is directly impacted such bad fiscal policies. Higher credit card rates. higher auto loan rates, higher rates for all forms of borrowing have been elevated by the massive runup in federal spending since Biden and the Congress went on a wild spending spree. Rates will come down when some semblance of fiscal sanity returns, but it will take years to get rates down to where they were before Biden was installed as POTUS. Elections have consequences. Even manipulated ones.
Under Communism the People DON’T EVER OWN THEIR OWN BODIES, they LIVE IN SERVITUDE to THEIR GOVERNMENT! And that’s exactly what today’s so-called Democratic Party Leadership DESIRES!
Years ago, there was a television advertising campaign that featured a woman softly saying, “If you want to capture someone’s attention, whisper.” I don’t remember the product, though…
Yes, Biden’s whispers get our attention. They’re not based in fact but in the deluded fantasy of his own success as president. Bidenomics: “It’s working folks, it’s working.” 2022’s large increase in Social Security payments: “You’re welcome”. There are others, and they are very comical when he says them.
What isn’t remotely funny is how he has destroyed the American dream in 2 short years. He also has made this country less safe with his porous border policies. He has killed 200,000+ mostly young Americans due to fentanyl poisoning seeping through the border. The world is laughing at us, thinking Americans must be bonkers for voting this fool and his worthless VP into the White House.
The failure of the economy to increase our standard of living has barred many young people from home ownership. Speaking with young customers and vendors at the farmers’ markets–if they open up the conversation first–they feel left behind and have lost hope they’ll ever achieve this marker of traditional American culture. Some have land that has been in the family for generations, and have moved in to farm it. Where I live now, in the rural countryside, more opportunities exist because of lower home prices and taxes.
I am so glad I moved here, where many can live on SS income. Maybe that’s one solution, to move out of the expensive cities and suburbs. It’s a different way of life, for sure, but I can find anything I need right here in this town of 4100 residents or within one hour’s drive.
Like Reagan reversed the mistakes made by Carter, Trump or any Republican as president can reverse Bidens disasters, so don’t forget to vote. Every vote counts! It’s up to us–each one of us–to do that one simple thing to guarantee a better future for everyone.
Joe is just reading a speech that someone else wrote. I don’t believe that he knows much of anything that’s going on! He tries to do what he’s told to do but even that is difficult for the dementia ridden 80 year old!! He and Democrats show that they don’t care about their constituents, they care about everyone else but not us!! He has no idea what he’s done to our country that is negatively impacting us! His policies aren’t working for us and Democrat elites know this but it’s of no concern to them. They are all wealthy and will survive everything but we won’t!!
God have mercy on us.
The comment below, PaulE, is the exact play program of Barrack Obama, who’s the one driving this train. Obama tells Jill Biden and she tells Joe how to think and what to do. They are systematically destroying, not only home ownership but, America. The Democrats want the poor to remain poor and the rich to remain rich. I’m not sure they’ve thought through who will run the country when the middle class is gone. The nonsensical Climate Change myth is another part to the American people losing control over their lives and bowing to the big government machine. This makes me ill. God Bless America.
Velcome comrades to za comink “New World Order” spoken of so lovingly by George Bush Sr. during his presidential acceptance speech. Yup, watched that speech. A couple hundred years ago or so, Ben Franklin was asked: “What is the best form of government?” His answer: “A Republic if you can keep it.” Another great but obscure comment made at those times was from Patrick Henry: “When a nation forgets it’s God, tyrants soon forge it’s chains.” There is nothing “accidental” about the present dismantling of our once strong Republic…it must go. Oh, Bush’s speech? “We must usher in the New World Order.”
The first and foremost order of the NWO business is to disarm We The People. Anyone so naive as to think it’s for “our own good” best wake up and study the basic reason for the Holocaust besides the fact Hitler hated the Jewish people. Biden’s “presidency” is a fraud. Biden’s “handler” IE: a previous president is under, no doubt the tutelage of one of the most evil individuals to ever draw breath….initials GS. Our nation has by and large put our God on the back shelf. HE is the One Who brought together the men who “risked their lives, honors and fortunes” to bring this nation to life. He is the One Who’s guided it through God fearing men and women. HE is the One Who put it in our hands….and it’s sifting through the people’s fingers at an alarming rate. It’s not just one act, or one administration…We The People have been busy raising families, buying homes, building businesses and that’s a good thing…but in the interim we’ve mistakenly trusted politicians who quickly, in the rarified air of the most evil city in the world, Washington D.C..,have formed their own “idea” of “the” perfect world…politicians on both sides…and we the people will be on the fringes.
Those who may have an understanding of the “end times” also understand America the once Beautiful is no where mentioned in those times.
This is surprising? These “progressives” have been singing Schawbs, “you vill own nothing und be happy” since the drooler in chief got into office.
And no, its not going to get better. Trump nor any other savior isn’t going to ride into town and save us. The collective we, as a country, is gone. Dead. Kaput. Deal with it miserably or try to figure out a way to flee these shores.
ALL Dems are Anti America day 1
Killing the American dream???? I believe Biden’s killing about EVERYTHING !!!
Good old democrat! If you have good credit and money down to buy a house you will pay an additional $4,000 to close your loan. If you have no money down and bad credit you pay $4,000 less. People that have bad credit and no money down are going to default on their mortgages you watch it’s going to be another housing nightmare brought to you by the Democrats. And they wonder why the housing market screwed up
If you want to know why America is in the condition it finds itself, get a book written sixty years ago, None Dare Call It Treason by John A. Stormer. It reviews the events that created the present-day conditions that began with the deceptive FDR, a deceitful socialist and sycophant of Joseph Stalin.
During the week of February 4-11, 1945, the most critical Allied conference during the Second World War was held at Yalta on the Crimean Peninsula in the Soviet Union, between U.S. President, Franklin D. Roosevelt, British Prime Minister, Winston Churchill, and Soviet leader, Joseph Stalin. Their decisions determined the fate of tens of millions of people around the world, with essential residues remaining even today three-quarters of a century later.
AMAC–is there a way to filter out the obvious baiters who comment here? It distracts and detracts…It is becoming more pervasive, and is not in keeping with sincere remarks.
What ole Joe is doing is take away home ownership from Americans. Remember the WEF slogan :”you will OWN nothing but you will be HAPPY”.
Inflation is also contributing to getting rid of our money. Orders to buy e vehicles, high gasoline prices. High cost of acquiring a fossil fuel car. High interest rates on car-loans and mortgages.
Wait till the digital money is introduced and the banks ordering you what you have to buy. Don’t think this is not coming here!! So far everything they have said in the WEF plan has come to pass. In Europe they want een digital ID just like they do in China. As soon as you do something wrong they can fine you let your neighbors and families know what you did wrong plus your people score goes down and you end up in the poor rating category you will be restricted from taking part in een social life. You will be banned from going to restaurants, movies, riding public transportation or leave your home. Part of their plan and it’s coming. That there are leaders that think this is a good thing have never lived under a dictatorship.
You must be a jackass in sheep’s clothing
Biden is putting at risk the ability for Americans to buy much of anything!! I can’t afford to buy another house if I sold this one. I can’t afford to buy a car, new or even used!! I’m having trouble putting food on the table and just getting around in my small town!! I’m sick of this Democrat notion that there are two classes – the elite and everyone else!!! I’m not sure who is knocking at the door but Joe is set to sell America to the highest bidder and it’s disgusting!!!
Stolen elections have consequences.
Biden wants to take America down!
Another reason is that now a full 20% of middle class homes are sold to the well off or corporations for cash offered above asking prices. So the inventory is also down. They are then flipped or turned into rentals. Zoning laws are changing in many places allowing the homes to be torn down and multi family homes built on the lots My guess is they expect the government will eventually buy or rent them for the millions of those “in poverty” or immigrants pouring in.
Or if you’re a person worried about the WEF’s plan to “reset” the world economy and way of life, they wish to eliminate single family homes. They see them as racist and would rather people live diversely in “equitable”, green multi-family buildings.
And remember…this guy received 82,000,000 million votes.
Biden’s goal is to drive as many as possible into government housing so they can be controlled.
The lack of available supply of homes for sale is one of the main factors driving the dynamics of today’s housing market. There is currently a high demand for housing, but there aren’t enough new homes to meet it. Homebuilders have been slow to put up more homes, especially at lower price points, due to more restrictive zoning and higher labor and material costs. The pandemic-fueled work-from-anywhere phenomenon has also contributed to the surge in housing demand. According to Freddie Mac.
The United States is not building enough homes to account for the number of people setting up their own households. As a result, there is a sizable shortage of new homes after more than a decade of under-building relative to population growth, according to a new analysis from Realtor.com released Wednesday.
The gap between single-family home constructions and household formations grew to 6.5 million homes between 2012 and 2022. However, this figure overstates the housing shortage, since new multi-family homes offer options both to buyers and renters. If multi-family construction is included — which is predominantly rental units — this gap is cut to 2.3 million homes.
Add in the problems of the Federal Reserve increasing interest rates. Mortgage rates have gone from 3% pre Covid to over 7%. Our country has added approximately one Los Angeles and one Chicago to the population from immigrants coming across the border. Where are they going to stay? Insufficient infrastructure that needs to be built to accommodate all this.
Of course Democrat Marxist will deny this. Until they or theirs experiences it.
Did Joe Biden just whisper ‘I am Satan. Worship me’ or did I hear wrong?
Correct me if I’m wrong but the only thing I have heard come out of his or his administration’s mouths are lies. Why do people believe these lies. They can’t be that stupid or can they.
Oatmeal Brains isn’t doing crap he doesn’t even now where he is most of the time.
This is Obama finishing his Fundamental Transformation of this great nation.
Democrats and do nothing Republicans are the problem, we need to remove them from office legally and CONSTITUTIONALLY.
Citizen Grand Jury?
Do they even have valid Oath of Office?
81M Americans chose this for themselves. It’s just so confounding that people vote against their best interest, and it’s all ignored by Corporate media, shielded from criminality by the justice department, and encouraged by a very wide range of Corporations. It’s like everyone has the same mental disease.
Biden is just like King Midas… only everything he touches turns to s-t. Oh and my oven doesn’t work so I’m waiting on an igniter for a week and a half because of “supply train issues”. IT’S (not) WORKING!
This man needs to go! And his VP with him!!
We need men and women who have morals and care about America
Bring back “In GOD we TRUST”!
I answered an Email poll question in August,2020. “Do you think Joe Biden could successfully lead our country as President?” I answered…”NO!! Joe Biden couldn’t lead a Cub Scout meeting let alone a country!” How true!!
He’s is a liar as always, a corrupt thief,
a plagiarist, a traitor, and a stumbling, stuttering, mentally impaired moron!
He has dumped rotten feces onto our economy, our national security,
our sovereignty, our international reputation, our border security,
our religious freedom, our safety against crime and violent death, our military strength, and quite possibly even our freedom from foreign invasion!
My 5th grade grand daughter
could have done better as president
up until now, than this idiot
Joe Biden! The sooner he’s GONE,
the sooner America returns to greatness!
Heck, the Liar in Chief is killing America. Wake up folks.
I can’t believe thus idiot is not only bragging about “Bidenomics” but actually campaigning for re-election based on it! But then when you’re whole political career is based on failure, what do you have BUT failure to run on?
And how can things improve with the government debt of 32 trillion hanging over us? Reagan didn’t have to deal with that…
He and the very far left want everybody in Soviet-style dreary apartment blocks. Near where they work so cars will be unnecessary and internal passports will be instituted.
Do not ever move to Washington state. The military is why we are here. We just stayed here. It has gotten so bad with crime, murders, fires, drugs, shootings and on and on.It is getting so dad and home prices are way above what they should be. Homeless people are everywhere all over the city and buildings down town that rent apartments are now being torn down. The hardcore Democrats are responsible for much of this but no one will fight them. Our taxes on our homes are through the roof. Mine used to be$60 a year now almost $4,000 . a year. It is out of hand.We get some military benefits but make just a little over the requirement, We are in our 70’s. How grate it is not.!!
To put things in perspective, the interest rate to buy a home in 1980 was running around 16% and to buy a house was a major undertaking at that time. The big difference to me is why did the home prices almost double the last three years?
KKKJoe Biden has no more interest in working families than he does the black man. Everything he quacks and anything the sluggard does is mega-false and meant as deception.
Vote for a senile person to be president and you get senile results, how come the democrats couldn’t figure that one out.