Joe Biden has overseen one of the worst economic recoveries in decades.
What’s more, there’s no sign that things are getting better any time soon.
And now, one shocking economic indicator has Biden seeing double.
The COVID crash of 2020 continues to leave its mark on the American economy.
While the stock market continues to post record highs thanks to the Federal Reserve’s low interest rates hundreds of billions of dollars of bond purchases, and trillions in new money printing over the past two years, the broader American economy continues to struggle.
What’s more, there are some economic indicators that suggest that things may actually be getting much, much worse.
With the Federal Reserve having printed over 40% of all American dollars ever created in the last 18 months, fears of growing inflation have finally become a reality.
Now, one of the bedrocks of the American economy is showing signs of significant price inflation that could have a major effect on Biden’s agenda going forward, and could spell disaster for Democrats in 2022 and in 2024.
Yahoo reports, “The last time Americans were this turned off by the U.S. housing market, borrowing costs were over five times the current rate.
The share of people who think now is a good time to buy a home fell in September to 29%, extending the plunge from March when the proportion was more than twice as high, data from the University of Michigan consumer sentiment survey showed Friday. It’s also the smallest chunk of respondents since 1982.”
This report comes after months of steady price inflation within the American housing sector, with home prices breaking levels not seen since before the 2008 financial crisis.
What’s more, the Federal Reserve’s policies has seemingly enabled the creation of a new housing bubble that could possibly be larger than the one seen over a decade ago.
Even more disturbing is the fact that the last time consumer confidence in the housing sector was this low, the interest rate on a 30 year home loan was over 15%. Today, that figure is hovering below 3%.
“The figures highlight how property price appreciation has rattled prospective buyers and more than offset the bright side of cheap borrowing. Prices have skyrocketed amid low inventory as Americans compete for space, with year-over-years gains on previously-owned, single-family homes exceeding 20% –surpassing the inflation-fueled increases seen in the late 1970s and early 80s,” adds Yahoo.
Home prices across the country continue to rise, with the average house selling for nearly 20% more than it did in July 2020, bringing the median home price to $367,000.
Housing costs in America continue to be a strain on an already weakened economy that is still attempting to recover from last year’s worldwide economic meltdown, and the spiking cost to buy and own a home is only creating more headwinds for Americans, especially for first-time home buyers.
Typically, the cost of buying a house in the United States is around 5-7 times annual incomes. Today, that figure currently stands at around 10 times the annual income of the average American.