A New Credit Crunch the Cost of Credit for Consumers And Small Business in New
A New Credit Crunch the Cost of Credit for Consumers And Small Business in New
Finance Us Congress House of Representatives Committee O
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In January of this year, when the interest rates were roughly around 7 percent, based on that $24, 000, a person could af- ford to purchase a home of $100, 000. As the interest rates in- creased to 8 percent, now their house purchase ability dropped down to $90, 000. At 9 percent, it is down to $80, 000. And notwithstanding the articles that I read most recently in the Banker and Tradesmen, the issues on October 5 and October 12 which both forecast increases in home ownership. I am going to que...ry the writer to take a reality check because it is not happening that way. Take a discussion on inflation. At the forefront of economic recov- ery is clearly going to be home ownership because it spurs eco- nomic growth by infusing the job market. And given the fact that the interest rates have risen six times in a significantly short 23 period of time means that, rather than being on the upside of the economic bell curve of consistency, we are fast becoming poised for another inflationary mode.
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