Pantagraph Changes Economics

by:  Diane Benjamin

Maybe low-information voters are a result of low-information media sources!

Quote from an article called “Mortgage rates’ rise unlikely to derail local housing market” by Pantagraph reporter Kenneth Lowe:

An increase in mortgage rates is unlikely to severely harm Bloomington-Normal’s rebounding housing market . . .

This quote is in the Money section.  The article goes on to explain State Farm directs the local housing market.  Is State Farm handing out checks to home buyers?

According to the article, mortgage rates are up from 3.98% to 4.51% and could go to 7.5%.  Here are the facts:

A $200,000 loan for 30 years costs:

3.98%      monthly payment of 952.53

4.51%      monthly payment of 1014.56  $62.03 more a month – $744.36 a year

7.5%        monthly payment of 1398.43   $445.90 more a month – $5350.80 a year

Unless families are printing their own money or State Farm is handing out home-buyer grants, logic states the home market will be hurt.

Simple economics show when Americans have less money to spend because of interest rates, high gas prices, and high food prices – the economy suffers.  The Bloomington-Normal housing market is NOT immune from economics.

Maybe the Pantagraph needs a CPA or Economist writing stories for the Money section.





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