Mortgage rates are climbing once again, reminding Americans that Bidenomics is about as successful as Kamala Harris explaining anything. The average 30-year fixed-rate mortgage has hit a whopping 6.91%, creeping ever closer to 7%, according to Freddie Mac data. Meanwhile, 15-year mortgages have spiked to 6.13%, a sharp increase from the previous week. This marks the third straight week of rate hikes and the highest levels we’ve seen since July.
Freddie Mac’s chief economist, Sam Khater, stated the obvious: “Compared to this time last year, rates are elevated and the market’s affordability headwinds persist.” No kidding, Sam. Affordability isn’t just a headwind; it’s a hurricane, and the Biden administration seems more interested in subsidizing Ukraine than addressing the struggles of American families.
Even as mortgage rates soar, housing prices remain as bloated as a Washington budget. For prospective homebuyers, it’s a one-two punch to the gut, making the American Dream more of a pipe dream. Yet, in what can only be described as stubborn optimism, some buyers are still trudging ahead. According to the National Association of Realtors, housing contract signings in November hit their highest point since early 2023. Maybe these buyers know something the rest of us don’t—or maybe they’re just tired of waiting for Democrats to fix anything.
But let’s not sugarcoat the situation. Demand for mortgages has plummeted. The Mortgage Bankers Association reported a 13% drop in applications for new home purchases in the final week of 2024, with refinancing applications nosediving by 36%. Sure, it’s the holidays, but let’s not pretend that’s the only factor. When rates are near 7%, who can afford to think about buying a home, let alone refinancing one?
This housing market mess is yet another example of how Democrats promise a utopia and deliver chaos. While they’re busy lecturing the rest of us about equity and green energy, regular Americans are struggling to keep a roof over their heads. If this is the Biden administration’s idea of “building back better,” maybe we need a refund—and a new builder.
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