People looking to buy a home have stayed watching the mortgage rates for the last few years, and ever since Biden became President, they have been incredibly high. After a reprieve at the end of January, the week ending February 22nd saw them rise for the third straight week. Coming in at 6.9%, it was up from 6.77% just a week prior. While last year’s high of 7.77% in October might seem like a bad nightmare, a comeback could be around the corner.
Sam Khater, Freddie Mac’s chief economist, offered his interpretation in a statement, “Strong incoming economic and inflation data has caused the market to re-evaluate the path of monetary policy, leading to higher mortgage rates.” Sounding more like a bad used car salesman than an economist, Khater’s explanation relies heavily on the fact that the Fed doesn’t set the rate directly, but it damn sure heavily influences them. Instead, the 10-year US Treasuries sets the path for mortgage rates to follow. In turn, it’s heavily influenced by the Fed’s actions.
Changes to the mortgage rates can be heavily rooted in the actions of President Biden since he took office. Essentially, he has taken every step he can to ensure the American economy is in the toilet as rates skyrocket. Notes from the Fed that teased the idea of rate cuts coming in 2024 have yet to be seen. While they previously cautioned people from relying on them to happen, the continuous jump in rates is something nobody wants to see, except for Biden and his minions who are profiting off this.
