All opinions expressed in this article are solely the opinions of the contributors.
The rising cost of housing has invited criticism and ideas from across the political spectrum but is still considered one of the most challenging issues to solve despite bipartisan concern. Average rates for a fixed 30-year mortgage have more than doubled since Jan. 1, 2022.
Straight Arrow News contributor Newt Gingrich warns readers that the housing affordability crisis, coupled with current Federal Reserve policy, present a clear danger to the entire American economy and creates risks for all Americans whether or not they own a home.
It should sober everyone that the number of applications for new mortgages for houses is at the lowest level since 1996. Think about that…the lowest in 27 years.
Now, what does that tell us? It tells us that the Federal Reserve approach, which is a demand side, punish the consumer, punish the American worker … is beginning to work, because of course, it’s punishing people to a point at which they can’t afford to buy a house.
Now, what’s the effect of that? Well it means, first of all, if you’re a young person, your chances of buying a home just got a lot worse. Second, if you’re somebody who has spent your lifetime paying off the mortgage on your house, and that was your plan for your retirement, the value of that house just dropped, because people can’t afford to buy it.
