Rising mortgage rates on top of sky-high prices are making it harder for Americans to afford a new home. Now the Biden Administration may make matters worse by cutting government mortgage insurance premiums.
Housing prices have surged nearly 40% nationwide since January 2020 and are up 16% in a year. The Federal Reserve is mainly responsible since it kept interest rates near-zero for too long while amassing an enormous portfolio of mortgage-backed securities. This pushed the average 30-year fixed mortgage rates below 3%.