Economic hardship caused, in large part, by President Biden’s wasteful spending policies and misguided attacks on American energy production recently broke another record. For the first time in over two decades, mortgage rates rose to 7.12% as the Federal Reserve continues its rate hikes to combat the inflation crisis spurred by reckless government spending. Even worse, there is no indication that this upward trajectory will reverse course in the coming months – spelling disaster for American families who want to purchase a home and plant their roots.
While President Biden continues to tout his tone-deaf “Bidenomics” agenda, I am working on solutions to help our families achieve the dream of homeownership without breaking the bank.
Coupled with pesky inflation and low housing inventory nationwide, housing prices have reached and remained at unaffordable levels for too many Americans. Serving on the House Ways and Means Committee, I helped introduce the Neighborhood Homes Investment Act, which will mobilize private investment in rural communities to construct new, affordable homes and revitalize existing homes to attract and keep families and businesses in rural America. More specifically, this legislation establishes a federal tax credit that developers can claim to close the “value gap” – which occurs when the cost to build a home exceeds the price at which it is expected to sell – by covering up to 35% of development expenses for new construction. This simple policy fix will encourage more home construction, expand housing inventory, and provide our families with more options when searching for the right home.
To address rising housing costs, I also voted for the Middle Class Borrower Protection Act, which would repeal new rules implemented, at President Biden’s direction, by the Federal Housing Finance Agency (FHFA) to increase mortgage payments for homeowners with higher credit scores and redistribute those funds to individuals with lower credit scores. According to some estimates, this policy could increase mortgage payments for responsible homeowners from anywhere between $400 to $1,200 per year. Iowa taxpayers should not be unfairly punished for their financial prudence. Fortunately, this legislation would protect our families from costly mandates and stop President Biden’s wealth redistribution schemes.
It’s unfortunate that President Biden’s allegiance to reckless spending created the poor economic conditions that have prevented our families from buying a home. I regret that he will never learn that money doesn’t grow on trees and Americans are struggling due to his failed “Bidenomics” agenda. As a father of four and fiscal conservative, I will continue to do my part to ensure that our families can affordably achieve the dream of homeownership and keep more of their hard-earned money.
We are government together, and your thoughts and opinions matter to me. Please contact my office at Feenstra.House.Gov or by phone at 202-225-4426 if I can ever be of assistance. I am proud to represent our families, farmers, main street businesses, and rural communities in Congress.
