Staff Reports
The aftermath of Joe Biden’s disastrous economic policies has turned the American dream of homeownership into a nightmarish housing market that would make even the most optimistic buyer reconsider. With rising interest rates and home prices skyrocketing, many prospective buyers find themselves stuck in limbo, eagerly waiting for a chance that seems to never arrive. The disastrous financial landscape is now a challenge for President Donald Trump, who faces the daunting task of reversing the damage inflicted by his predecessor.
Inflation has been on the rise like a bakery’s prices after a sugar shortage, climbing a shocking 3% in January. With hopes of interest rate cuts dimmed, the dream of affordable mortgages appears as elusive as a unicorn on a misty morning. The Federal Reserve, led by Jerome Powell, has acknowledged that the economy is still not in a place conducive to slashing rates, leaving many Americans feeling like homeownership is forever out of reach.
Biden housing market inherited by Trump creates nightmare scenario for American dream https://t.co/X64YxZ3qX2
— Just the News (@JustTheNews) February 17, 2025
Data from Redfin highlights a grim reality: pending home sales in January plummeted to the lowest level recorded since the COVID-19 pandemic began. It seems first-time homebuyers are now a rare breed, with their market share having dipped to an all-time low of 24% in 2024. This decline is primarily due to the rollercoaster of interest rates that peaked at 7.79%—the highest level seen in more than two decades. Once, in the not-so-distant past, record-low interest rates had coaxed eager buyers into the market; now, those dreams have been dashed alongside the wallets of countless Americans.
The seeds of inflation were firmly planted during Biden’s administration, primarily after the enactment of the $2 trillion American Rescue Plan. Experts warned that such fiscal irresponsibility would inevitably lead to spikes in inflation. With soaring costs and higher interest rates linked to these actions, a reduction in home sales is hardly surprising; it’s merely the result of a government that has completely mismanaged the economy. As many as 70% of mortgage lenders and 60% of real estate agents have fled the industry, overwhelmed by the havoc wreaked by Biden’s policies.
Amid this housing market carnage, many American homeowners are stuck in their low-interest mortgage deals, reluctant to make a move for fear of losing their sweet 3% rates. For first-time homebuyers hoping to enter the market, the prospects look dire; payments for comparable homes have nearly doubled since the Biden years. In a world where common sense seems to be in short supply, President Trump has an uphill battle ahead of him. Nevertheless, some economists believe that if Trump can rein in inflation and reshape government spending, a resurgence in the housing market may be on the horizon, albeit not without significant effort.
The reality is stark: rising home prices combined with potential interest rate reductions could finally entice buyers back into the market. As some predict a modest 3% increase in home prices this year along with a potential 9% rise in sales, the truth remains that many Americans are still facing uphill battles when it comes to securing the American Dream of owning a home. The recent chaos has left many voters wondering whether the so-called leaders in Washington can pivot this sinking ship, or if it’s destined to drift further into the storm.
