Source: Redfin —
High mortgage rates are keeping homebuyers on the sidelines, leading to declining home sales and a build-up of supply.
The number of homes for sale nationwide in June rose 2%. That’s the first annual increase since July 2019, before the pandemic-fueled homebuying frenzy sapped the market of available homes and sent buyers into bidding wars for nearly every listing. Now, supply has built up as the combination of 5.5%-plus mortgage rates, high home prices and a faltering economy push more buyers to the sidelines, thereby creating a more balanced market. Home sales fell nearly 16% from a year ago, the largest decline since May 2020. The shift has also started impacting sale prices: They’re still growing by double digits, but the 11% year-over-year increase is the smallest in nearly two years.
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The Fed’s interest rate increases will not affect the 1% but will kill working-class citizens trying to lock down pre-inflation pricing. The wealthiest Americans will buy today’s bargains and wait for inflation to make them even wealthier, while lower-income residents, trying to figure out how to make their next monthly rent payment, are priced out of the market. Anyone believing they should “Trust the Fed” is insane. The Fed is privately owned by banks. The Fed is not a Federal agency. The Fed always does what is best for its owners, the banks not the common citizen. Wake up America.