Higher interest rates mean fewer affordable homes

Higher interest rates mean fewer affordable homes

The Fed's push to cool inflation could deepen the affordable housing crisis. We'll also look at President Biden's prayer for a good economy and Democrats' push to lower drug prices.

The Federal Reserve has been working for months to stem the impact of inflation by raising interest rates and slowing the housing market. As a result, home sales and construction plummeted off a cliff this summer.

New and existing home sales declined for months after the Federal Reserve raised mortgage rates. But experts say these price increases, along with supply shortages and historically low inventories, will only exacerbate shortages.

Higher interest rates will also likely prevent homeowners from building enough homes to meet those needs. The pandemic put home construction on hold for several months, then created a series of supply and labor shortages, delays, delays, and obstacles to completing homes on budget and schedule.

President Biden says he does not expect the US economy to enter a recession before a major GDP report that could show the economy is contracting.

The White House is preparing for Thursday's Bureau of Economic Analysis report, which could show the second consecutive quarter as the economy contracted, indicator economists often use to signal a recession.

Several White House officials have spent the past week brushing off the idea that the economy is in a recession based on data on Thursday.

0/Post a Comment/Comments