12 September 2023
In Q2 2023, the median sales price of US homes fell by 7.4%, marking the sharpest decline since the recessions of 1970 and 2008. This downturn coincided with negative M2 Money growth. With the Federal Reserve’s rate hikes, debt-to-income ratios have reached unprecedented levels. Under the Biden and Powell administration, mortgage rates have exceeded 7%. Furthermore, access to mortgage credit is becoming more restrictive. High mortgage rates coupled with stricter lending criteria spell trouble for America’s middle and lower-income earners.