Sean Hannity: This is the third Fed increase since Biden took office


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Sean Hannity dissected how the Fed’s rate hike is going to negatively impact mortgage rates and the housing market in Joe Biden’s cratering economy on “Hannity.”

SEAN HANNITY: Earlier in the day, the Fed’s massive three-quarter point rate hike. Now it’s the Fed’s third increase since Joe Biden took office. Goldman Sachs, for example, predicts that the next two years, up to 11 years, maybe longer. Anyway, three so far, many more are expected. And as inflation depletes savings and retirement funds, you all watch it. You all see it.

FEDERATION RATE HIKE WILL HAVE ‘DEVASTATING’ IMPACT ON CONSUMER, FORMER HOME DEPOT CEO WARNS

Donald Trump predicted it. It’s hurting Americans all over the country, especially the poor, middle class, people on fixed incomes. Two-thirds of Americans now live paycheck to paycheck. Unfortunately, rate increases are not good, for example, for property values, to put it mildly. Let’s break down what this rate hike means. For example, now under Donald Trump in 2020many Americans they were getting mortgages with interest rates around 3%, some even lower in both.

LEAGUE CITY, TX – JUNE 16: A sold sign sits near a home site in the Magnolia Creek subdivision June 16, 2005 in League City, Texas. The US Department of Commerce reported on June 16 that new home construction rose 0.2% in May as the housing market, fueled by low mortgage rates, continued its boom. (Photo by Dave Einsel/Getty Images)

At the time, I was talking about a 30-year fixed rate. Now, if you bought a house for $400,000, let’s say you put 20% down, your monthly payment on a 30-year loan would be $1,993 per month. After 30 years, the full mortgage paid with interest bought a house for $400,000. That would be $485,600. Now you raise interest rates by half a point or half a percent. Your payment increases by $100 and the total payment paid over 30 years increases by $32,000. Another half point. You are looking at an increase of $200 each month and a total increase of $64,000.

It’s at 4% interest. Now, before today, a 30-year fixed mortgage averaged 6.3 percent. At this rate, your monthly payment is $500 higher than it would have been in 2020. And the total amount you would pay over the course of your loan would be $203,000. Wow. Now, today, it’s much worse. Rates should now reach 7.5%.

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