January 25, 2022 // By Steven Thomas
There are two opposing economic forces impacting the housing market right now. Rising mortgage rates and a record low supply of homes available to purchase.
OPPOSING FORCES: THERE ARE SIMPLY NOT ENOUGH HOMES AVAILABLE FOR BUYERS AND RISING RATES HAVE NOT YET HAD AN IMPACT ON THE INSANELY HOT HOUSING MARKET.
The supply chain problems have been well documented across the United States and around the globe. One of the hardest hit industries is new cars. The supply of available new cars has dwindled down to record lows. As a result, dealers are adding a “market adjustment fee,” a line-item cost above the MSRP. The fee ads anywhere from a few thousand dollars to as much as $20,000 more for a popular model. It has everything to do with supply and demand. Consumers looking for a new car are confronted with very few options and rising car prices. To get their hands on one, many are willing to pay the surcharge.
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