The Mortgage Bankers Association (MBA) reports a rise in folks steering clear of mortgages and homeownership, due to the uptick in interest rates. Real estate investments likewise remain on a decline.
As inflation continues to fester in the US economy, mortgage rates are going to keep climbing. This development in mortgages also comes after the Federal Reserve raised interest rates back in March.
Economists furthermore warned this action by the central bank could engender a 2023 recession. However, the Federal Reserve has pushed back against this claim.
A tough road ahead
At this time, inflation continues to significantly carry a lead over the wages of the everyday American.
The White House has already acknowledged the situation as dire enough that many folks are wondering how they’ll manage to make it from month to month.
This latest news on inflation, interest rates, and mortgages comes as the Biden administration is suffering lower and lower approval ratings on the economy.
President Biden continues to cite the Russian government’s war crimes in Ukraine as the cause of inflation; however, inflation’s lasted for at least 11 months now.
