Friday, March 30, 2018

Everything the Fed touches turns to crap as very few Americans can now retire, and even fewer can afford a home

Earlier this week the St. Louis Fed came out with a paper in which they were 'shocked' that so many Americans (around 65%) have less than $10,000 for retirement.  And of course this same central bank refused to place blame in its proper place from the zero percent interest rate policies they created that killed off fixed income investments.

And now on March 29, a new report on home affordability shows that workers in 70% of state counties cannot afford to buy a home in the location they reside, meaning that another of the Fed's programs (recreating the Housing Bubble) has resulted in very few being able to afford to buy a house.

Perhaps there is a trend here... everything the Fed touches turns to crap.

Housing, as we've pointed out in the past, is perhaps the most reliable bellwether of widening economic inequality in the US. And in its latest quarterly report on housing affordability in the US, ATTOM discovered that median-priced homes aren't affordable to average wage earners in an astounding 68% of US housing markets. 
In its report, the company calculated affordability by incorporating the amount of income needed to make monthly home payments - including mortgage payments, property tax payments and insurance - on a median-priced home, assuming a 3% down payment and a 28% maximum "front-end" debt-to-income ratio. 
The 304 counties where a median-priced home in the first quarter was not affordable for average wage earners included Los Angeles County, California; Maricopa County (Phoenix), Arizona; San Diego County, California; Orange County, California; and Miami-Dade County, Florida. Meanwhile, the 142 counties (32 percent of the 446 counties analyzed in the report) where a median-priced home in the first quarter was still affordable for average wage earners included Cook County (Chicago), Illinois; Harris County (Houston), Texas; Dallas County, Texas; Wayne County (Detroit), Michigan; and Philadelphia County, Pennsylvania. - Zerohedge

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