Federal Reserve: Border Crisis Causing Rising Mortgage Rates

The more than 7.6 million illegal aliens who have been apprehended at the United States southern border since Joe Biden took office are creating serious financial hardships for U.S. citizens in the form of higher mortgage rates, according to the Federal Reserve chairman of Minnesota.

While the long-run effect of increased immigration on inflation is unclear, immigrants nonetheless need a place to live, and their arrival in the U.S. has likely also increased demand for housing. Policy actions by the [Federal Open Market Committee] have driven 30-year mortgage rates from around 4.0 percent prior to the pandemic to around 7.5 percent today.
—Neel Kashkari, Federal Reserve chairman of Minnesota, May 7

Supply and demand: The logic behind Kashkari’s warning is that the 7.2 million-home shortage in the U.S. housing market is being exacerbated by the 320,000 illegal aliens that Biden has quietly flown into the interior of the United States.

This housing shortage has driven up home prices to the point where the median home price is now seven times the median income. To prevent home prices from rising further, the Federal Reserve is jacking up interest rates, making mortgage payments more expensive.

Of course, there are other factors at play in America’s housing affordability crisis, such as supply chain disruptions from the covid-19 lockdowns and red tape that makes it harder to build quality housing. Yet Kashkari makes a strong case that allowing millions of homeless immigrants to enter America illegally is creating financial hardships for citizens.

Prophecy says: Herbert W. Armstrong explained in The United States and Britain in Prophecy that the English-speaking peoples descended from the Israelite tribes of Manasseh and Ephraim. This means the Bible’s prophecies about Israel are directed primarily at the American and British peoples.

One prophecy says: “The Lord shall smite thee … and thou shalt not prosper in thy ways: and thou shalt be only oppressed and spoiled evermore, and no man shall save thee. [You] shalt build an house, and thou shalt not dwell therein: thou shalt plant a vineyard, and shalt not gather the grapes thereof” (Deuteronomy 28:28-30).

The fact that the border crisis is preventing Americans from buying homes is one way this prophecy is being fulfilled.

Learn more: Read “Lawlessness by Design.”