Trump has run his yap about how high interest rates are killing off home purchases, therefore, the Fed should lower its target rates and all will be well.
At best, that's a half-truth. In fact, Trump's "free money during CoVid" act kicked off a very serious inflation--which was significantly amplified by Biden a year later. That inflation increased the price of housing.
So is it the PRICE, or the RATE?
Let's run the numbers. Buy a house for $400K, put 20% down, and finance it at today's 6.48%. You pay $2393/month, including PMI and some proptax.
Buy a house for $400K, all the same, at 4.48%? $1992/month.
But buy the same damn house--without Trump/Biden inflation--for $300K, with 20 points down at 6.48%?
$1888.00
The price of housing is coming down in a number of US markets, by the way. Nobody's buying at the inflated price listing.
Watch: the prices will drop and Trump will get his way with rates--then Trump will take credit for the reduced payment burden, hoping that no one will use a simple mortgage-payment online table.
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