by Will Kessler
U.S. home prices climbed to their highest point ever in October alongside nearly 8 percent mortgage rates, fueling home unaffordability for average Americans, according to data released Tuesday by S&P Global.
The Case-Shiller home price index, which measures home prices in 20 major metro markets, rose by 0.6 percent for the month of October when seasonally adjusted, or 4.8 percent year-over-year, higher than the 4 percent seen in the previous month, according to a release from S&P Global. The month-to-month growth resulted in the highest level of home prices in U.S. history, following nine months of consecutive increases.
“U.S. home prices accelerated at their fastest annual rate of the year in October,” Brian Luke, head of commodities at S&P Dow Jones Indices, said in the release. “Home prices leaned into the highest mortgage rates recorded in this market cycle and continued to push higher. With mortgage rates easing and the Federal Reserve guiding toward a slightly more accommodative stance, homeowners may be poised to see more appreciation.”
The home market in Detroit saw the fastest growth, rising 8.1 percent for the year, followed by San Diego and New York, rising 7.2 percent and 7.1 percent, respectively, according to S&P Global. The Midwest and the Northeast saw the biggest gains in home prices, while the Southwest and West recorded more moderate gains.
Mortgage rates reached their highest point since 2000 on Oct. 26 at 7.79 percent and have since moderated slightly to 6.67 percent as of Dec. 21, according to the Federal Reserve Bank of St. Louis. Increasing prices and high interest rates have progressively reduced housing affordability, allowing a median-income household to afford a $737,392 house with a 30-year mortgage in December 2020, but only a $356,273 house as of August this year.
The price of housing has exceeded the general rate of inflation, which most recently rose 3.1 percent for the year in November, far higher than the Federal Reserve’s 2 percent target. In response to the high inflation, the Fed has raised its federal funds rate to a range of 5.25 percent and 5.50 percent, the highest point in 22 years, which has also placed upward pressure on interest rates on all forms of debt, including mortgages.
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Will Kessler is a reporter at Daily Caller News Foundation.
Photo “Home for Sale” by Nick Bastian CCND2.0.
With “BLACKROCK INVESTMENT” , co-operating with the “One World Government, UN, WEF”, and controlling all “MONEY”,
and the goal of eliminating “Private home ownership”,
What do you expect???
“If the American people ever allow private banks to control the issue of their money, first by inflation and then by deflation, the banks and corporations that will grow up around [the banks], will deprive the people of their property until their children will wake up homeless on the continent their fathers conquered.”
“The system of banking [is] a blot left in all our Constitutions, which, if not covered, will end in their destruction… I sincerely believe that banking institutions are more dangerous than standing armies; and that the principle of spending money to be paid by posterity… is but swindling futurity on a large scale.”
Thomas Jefferson
“The powers or financial capitalism had (a) far-reaching aim, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole. This system was to be controlled in a feudalist fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent meetings and conferences. The apex of the systems was to be the Bank for International Settlements in Basel, Switzerland, a private bank owned and controlled by the world’s central banks which were themselves private corporations. Each central bank…sought to dominate its government by its ability to control Treasury loans, to manipulate foreign
exchanges, to influence the level of economic activity in the country,
and to influence cooperative politicians by subsequent economic rewards in the business world.”
Prof. Carroll Quigley in his book Tragedy and Hope
“The Federal Reserve Bank of New York is eager to enter into close relationship with the Bank for International Settlements….The conclusion is impossible to escape that the State and Treasury Departments are willing to pool the banking system of Europe and America, setting up a world financial power independent of and above the Government of the United States….The United States under present conditions will be transformed from the most active of
manufacturing nations into a consuming and importing nation with a balance of trade against it.”
Rep. Louis McFadden – (Chairman of the House Committee on Banking and Currency) quoted in the New York Times (June 1930)
“(The Great Depression resulting from the Stock Market crash) was not accidental. It was a carefully contrived occurrence….The international bankers sought to bring about a condition of despair here so they might emerge as rulers of us all.”
Rep. McFadden testified in Congress (1933). There were at least two attempts on his life by gunfire. He died of suspected poisoning after attending a banquet.
“History shows that the money changers have used every form of abuse, intrigue, deceit and violent means possible to maintain control over governments by controlling the money and the issuance of it.”
President James A. Madison