The US housing market is going to fall apart, and everything is connected with Elon Musk and its virally criticizing the decision. The Government Government Department of Government Moscow (DOGE) stopped all housing projects in the US, including a $ 1 billion program aimed at maintaining available housing. This step is part of wider freezing in the US Department of Housing and Urban Development (HUD), according to the internal document considered by the Associated Press.
American housing dreams are very destroyed?
The Mitrade.com report shows that monthly housing in the US increased to a record $ 3104 in January. Along with this, mortgage payments have doubled in the last five years, on average 2237 dollars per month when supplementing up to $ 416 per real estate and $ 361 per insurance. Housing prices in the country have increased to the second largest in history within $ 31,300 to the average of $ 446,300.
This move from DOGE touched upon housing projects in more than 1000 communities and forced to close at least 8 national organizations that provided technical assistance to housing programs. Main non -profit organizations such as LISC and Enterprise Community Partners have lost $ 30 million with canceled grants. Not only housing owners, but also developers and contractors also suffer from mass layoffs when these grants stop. “It will devastate families with low income,” said Enterprise CEO Seong Donovan. “We lose thousands of available houses and local jobs for the night,” he added.
According to Realtor.com, the US housing market now requires an additional 3.8 million houses to meet the 2024 housing requirements. Now that DOGE eliminates important funding, this gap is expected to grow and cause some voice arousal.
Reduced housing sales and mortgage rates increase
The current state of the US housing market does not contribute to the government or buyers. The “Waiting for the House” section of 4.6% drop in January with an excellent decrease in the Midwest, South and West. The home sales index (PHSI), which is a key indicator based on the signing of the contracts, also decreased to 70.6 in January-low. In addition, mortgage rates found a sudden increase from 6.91% to 7.04%, making the home in America to realize too difficult.
With a decrease in availability and critical financing without a look, the crisis in the US housing seems to have just begun.
