Posted on 09/21/2023 7:11:38 AM PDT by george76
Bidenomics = High mortgage rates, high inflation rates, collapsed banks, expensive groceries, record high rent, and dwindling retirement accounts.
The Federal Reserve on Wednesday paused rate hikes. The Fed kept the benchmark rate in the range of 5.25% to 5.50%.
For now.
“We’re prepared to raise rates further, if appropriate, and we intend to hold policy at a restrictive level until we’re confident that inflation is moving down sustainably toward our objective,” Chairman Jerome Powell told reporters on Wednesday.
...
Despite what Jerome Powell said, inflation is not cooling. The Biden Regime relies on lies and voodoo math when it rolls out its latest inflation reports.
The Consumer Price Index (CPI) rose 0.6% in August – the biggest monthly gain for the year.
Energy prices soared as real wages declined – Bidenomics!
Gas prices once again this week soared to record levels for the year.
Grocery prices are up 19%. Americans are suffering because of Joe Biden’s tax-and-spend policies.
Per CNBC:
The consumer price index rose 0.6% in August, its biggest monthly gain of 2023. The inflation gauge rose 3.7% from a year ago.
The core CPI increased 0.3% and 4.3% respectively, against estimates for 0.2% and 4.3%. Fed officials focus more on core as it provides a better indication of where inflation is heading over the long term.
Energy prices fed much of gain, rising 5.6% on the month, an increase that included a 10.6% surge in gasoline.
The jump in headline inflation hit worker paychecks. Real average hourly earnings declined 0.5% for the month.
The Federal Reserve has raised interest rates 10 times for a total of 525 basis points since last year – 7 times in 2022 and 3 times in 2023 – in an effort to hedge inflation.
It’s not working.
Inflation rates are STILL high.
The higher interest rates are now posing a problem for the banking sector and the real estate market.
Silicon Valley Bank, Signature Bank and First Republic Bank collapsed this year after depositors withdrew billions of dollars from the lending institutions.
Regional bank stocks are also getting hammered amid fears of contagion.
The popular 30-year fixed rate mortgages are between 7.5% – 8.0% and housing prices are plunging.
Financial experts say the high mortgage rates are here to stay
Until the Republican Congress massively cuts spending there will be inflation. But McCarthy wants a CR and omnibus to continue and increase Pelosi-Biden programs and spending.
7.74% is the long term average3
7.69% is the mortgage rate this morning on realtor.com.
sources:
1Mortgage Rate History: Check Out These Charts from the Early 1900s
2Here's how much home prices have risen since 1950
3Kiplinger: The Magic Mortgage Rate Number to Tip the Housing Market
- Paul Volker
One thing that accompanies this....in the high period...CD rates were in the 8 to 12 percent range.
My dad would discuss this at length, how he locked in $50k for five years...at 13-percent...around 1980.
Conventional wisdom: a bad economic result helps the GOP in ‘24. After ‘20 and ‘22 all bets are off.
A rabid liberal, I suppose she has no clue her support added another ten grand
plus to her purchase.
Mortgage is a combination of two Latin words.
“Gage” is debt.
“Mort” is until dead.
Loose translation is “in debt till you’re dead.”
L
Conventional wisdom: a bad economic result helps the GOP in ‘24. After ‘20 and ‘22 all bets are off.
Energy prices soared as real wages declined – Bidenomics!
Gas prices once again this week soared to record levels for the year.
Grocery prices are up 19%.
All awful - but the fun part will be watching propaganda babes at the New York Times and Washington Post spin this as 'great Bidenomics at work'... .
Good point. Today they are 5%.
L"
Thank you for that information, my ex may get a sad laugh out of it.
So in my real estate transactions class, I was told that the etymology is that gage is promise, and mort meaning death (same root as mortal); so it means “death promise.”
Same basic gist though.
Merrill Lynch was paying 18% on their money market accounts back then.
I remember getting a CD at Buffalo Savings Bank for 15%.
I just bought a 26 week Tbill yesterday. The last auction was 5.3%
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