Several reasons are causing high mortgage rates in the United States, such as low supply, which seems to have been affected by the increasing levels of both illegal and legal migration in recent years.
“Although the long-term impact of increased immigration on inflation is uncertain, immigrants still require housing, and their arrival in the U.S. has likely boosted demand for housing,” said Neel Kashkari, president and CEO of the Federal Reserve Bank of Minneapolis, said earlier this week in a news release.
The number of people born in other countries living in the United States has grown by 6.4 million since President Joe Biden took office, reaching over 51.4 million people or about 15.5% of the total population, as reported reported previously by The Dallas Express.
As expected, the National Association of Realtors states that the United States currently has a housing shortage shortage of between 5.5 million and 6.8 million units, The Hill reported.
In connection, Biden’s Department of Housing and Urban Development (HUD) adjusted its participation requirements to allow illegal migrants to qualify for HUD vouchers, enabling them to become or remain homeowners. assisting them so they can become or remain homeowners.
A study published by the Journal of Urban Economics found that an increase of 1% in the U.S. population results in a corresponding 1% increase in rental prices. It also found that 94% of migrants between 2000 and 2010, both lawful and unlawful, settled in urban areas, thereby driving up home prices and rent.
Biden’s policies have reportedly contributed to high levels of illegal migration, as extensively reported by DX. If former President Donald Trump defeats Biden in November’s presidential election, some experts believe that policy changes could significantly impact the housing market.
“Trump’s previous term saw pressure on the Federal Reserve to keep interest rates low to support economic growth. A second term could continue to see a preference for lower interest rates, making mortgages more affordable and potentially boosting the housing market. However, this is contingent on the broader economic conditions and the Federal Reserve’s independent assessments,” said EZ Sell Homebuyers founder Mike Wall, per Yahoo Finance.
Trump has vowed to initiate mass deportations of illegal migrants if he is reelected, reported The Conversation.
