New Mortgage Applications Are Waiy Down

The two biggest factors in how the government comes up with the a c p i number are housing and transportation. For every one % that the 30 year fixed rate mortgage goes up, the affordability of the house you can buy drops by ten%. So here in the us, we've basically gone from three to five % for the 30 yearfixed rate mortgage. That means people,. even just from six months ago, can now officially afford to buy 20 % less of a house. The fed knows that, and they're actually trying to do that to slow down the economy, to slow down to arrain an eflation.