Mon, January 30, 2023

Housing Crisis Escalates to 15-year Record

U.S. economy

Almost anywhere around the globe, buying a home has become a tall task. With real estate companies buying out houses and apartments way past market prices, it’s become difficult for the retail buyer to compete. You either need to expect to pay through the nose or be a tenant for the majority of your adult life.

Things have been made more difficult by mortgage lending policies, which don’t mesh well with renting an apartment. Namely, many people complain that their rent is higher than a mortgage they’d need to pay. Still, they can’t get approval for lending, so they are somewhat stuck in place.

In the US, housing debt has risen to a 15-year high. In just a quarter, household IOUs have risen by 2.2%, signifying a massive divide between supply and demand. Worse yet, when we look at the year-on-year data, we can see a hike of 8.3%.

Piling onto that, inflation is running rampant all across the world, making it even more difficult to pay off debt. Many US citizens have resorted to taking out credit card loans that put a bandage on massive increases when it comes to how much it costs to live. Just from July to September, the total debt jumped by $351 billion.

What’s more worrying is that the increase is a part of a trend that doesn’t seem to be slowing. The previous quarter showed us a $310 billion jump, and the annual increase comes up to $1.27 trillion.

Auto debt is also a significant participant in the overall situation, showing an increase of 5.6% compared to a year ago. With the US’ dependence on cars, vehicles are less of a luxury and more of a necessity, adding to the bleak economic outlook. While the US isn’t directly tumbling towards recession, it isn’t off the table either.

YOU MAY ALSO LIKE

Oil might reach $150 per barrel as OPEC+ will control supply

The biggest oil and gas companies are prepared to report annual profits,

Sterling declined on Thursday. What about Euro and Dollar?

Sterling fell slightly on Friday but was still close to its highest

Nokia Beats Exceeds Earnings Predictions

Nokia Oyj’s earnings topped expectations. Even amid a worse macroeconomic backdrop, as

COMMENTS

Leave a Comment

Your email address will not be published. Required fields are marked *

User Review
  • Support
    Sending
  • Platform
    Sending
  • Spreads
    Sending
  • Trading Instument
    Sending

BROKER NEWS

OANDA Japan: No More fxTrade, USD/JPY Margin Shift

On Friday, one of Japan’s longest-standing online forex and CFD brokerages, OANDA Corporation, announced major changes to their service.  Specifically, the Japanese subsidiary of the brokerage will no longer allow new downloads of

BROKER NEWS

Broker News

OANDA Japan: No More fxTrade, USD/JPY Margin Shift

On Friday, one of Japan’s longest-standing online forex and CFD brokerages, OANDA Corporation, announced major changes to their service.  Specifically, the Japanese subsidiary of the brokerage will no longer allow new downloads of its