Americans are finding it increasingly difficult to afford rent or mortgage payments as housing costs continue to soar, spotlighting a broader trend of inflation making the most basic and fundamental costs of living exceedingly high for working people.
Shelter costs, which include rents and various other housing-related expenses, rose 0.7% in August from the prior month — the biggest monthly increase since 1991 — and skyrocketed by 6.2% compared to this time last year, according to data released this week by the Bureau of Labor Statistics.
Meanwhile, mortgage rates on Thursday surged above 6% for the first time since the housing crash of 2008. The 30-year fixed rate stood at 2.86% a year ago and at 2.65% in January 2021, when President Biden entered office and former President Trump was leaving the White House.
“This has raised interest payments on a 30-year mortgage for a $500,000 house by about $200,000 over the life of the loan,” economist Stephen Moore wrote in a newsletter this week sent out by the Committee to Unleash Prosperity. “That doesn’t help home sellers or buyers.” Read more…