US mortgages are still expensive and the situation is unlikely to improve. After a brief dip to 6% in September, rates are rising again. This week, the average rate on a 30-year fixed mortgage reached 6.84%, introduced by CNN. Economists predict that rates will remain above 6% for years to come, meaning Americans will be buying a new home for a hefty price. According to experts, Americans will have to get used to the fact that they are unlikely to return to the low levels of previous years.
This year, US real estate has sold for the least since 1995, and high rates and rising prices are discouraging many buyers. With a model mortgage for USD 200,000 (CZK 4.85 million), thirty years and a fixed interest rate of six percent the average American will pay a total of over USD 431,000 (CZK 10 million).
“The new normal will be around 6%,” Lawrence Yun, chief economist for the National Association of Realtors, told reporters Thursday. “We will not go back to the conditions of 3%, 4% or 5% mortgage rates.”
Another influence on the high levels is the economic policy of Donald Trump. Plans for higher government spending, tariffs and other measures could increase inflation, prompting the Federal Reserve to keep interest rates high. Rising national debt and bond yields are also pushing up mortgage rates.
For ordinary Americans, this means that many will have to rethink their plans to buy real estate. Some are waiting for rates to fall, but others fear that their children will not have access to the favorable conditions that were available before and during the pandemic.
2024-11-23 16:45:00
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How might the political climate and policy decisions, such as those enacted by Donald Trump, contribute to the rise in mortgage rates discussed in the article?
This text appears to be HTML code snippet containing an extract from a news article about rising mortgage rates in the USA. Here are some open-ended questions you could use to start a discussion based on this article:
**Section 1: Understanding the Situation**
* What are the main contributing factors to the high mortgage rates mentioned in the article?
* How do economic policies, like those implemented by Donald Trump, potentially influence mortgage rates?
* What are the potential consequences of sustained high mortgage rates for the average American family?
**Section 2: Impact on Individuals**
* How might these high mortgage rates affect people’s decisions about buying a home?
* What alternatives might people consider if buying a home becomes too expensive?
* Does access to affordable housing feel like a right or a privilege to you? Why?
**Section 3: Looking Ahead**
* What are some potential solutions to address the issue of high mortgage rates?
Is there a role for government intervention in stabilizing housing markets? What are the pros and cons of such intervention?
* Do you think mortgage rates will fall in the near future? What factors might influence their trajectory?
**Encouraging Diverse Perspectives:**
* Do you think the situation described in the article paints a fair picture of the housing market in the USA? Why or why not?
* Who do you think is most affected by these high mortgage rates? Why?
* Do you think there is a generational divide in how people experience the housing market today?
**Remember:** These are just starting points. Encourage participants to share their personal experiences, opinions, and perspectives. A lively discussion allows for the exploration of complex issues from multiple angles.
