The amount of money homebuyers are being asked to put down on their purchases of new homes has reached a “record high” under the Biden-Harris administration, thanks largely to dramatically higher interest rates resulting from inflationary monetary and economic policies.
“The typical down payment for U.S. homebuyers hit a record high of $67,500 in June, up 14.8 percent from $58,788 a year earlier,” according to an Aug. 28 news release from real estate brokerage Redfin.
Year-over-year down payment costs have been continuously increasing over the past months, with June marking the 12th consecutive month of rise, the report said, as noted by The Epoch Times.
Higher down payments are contributing to the ongoing affordability crisis in the housing market during the Biden-Harris administration. According to data from the National Association of Realtors (NAR), in June, the monthly payments required to afford a median-priced existing single-family home were $2,303. That is nearly double the $1,206 monthly payment needed in 2021.
Monthly payments now consume more than a quarter of an individual’s income. To qualify for a median-priced home, a person needs an income of $110,544, up from the $57,888 needed when then-President Donald Trump left office.
A significant factor driving up the cost of home loans is the rise in mortgage rates, which have surged from 3.01 percent to seven percent. Recently, however, rates have decreased from their peak in late October. As of the week ending August 29, the average rate for a 30-year fixed mortgage was 6.35 percent. It should be noted that the Federal Reserve began hiking rates as a means of taming what had become runaway inflation under Biden-Harris and two years of full Democrat control of Congress.
Redfin, meanwhile, noted that the increase in down payments is being driven by current market conditions, where “higher-priced, turnkey homes” in desirable neighborhoods are more likely to be sold. Turnkey homes are fully renovated properties that investors can purchase and rent out immediately. […]
— Read More: conservativebrief.com
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