Gasoline prices and mortgage rates are rising as Americans remain concerned about the economy
Gas prices and mortgage rates continue to rise as polls show Americans remain concerned about the economy.
Gasoline prices on Tuesday averaged $3.85 a gallon of regular gas across the country, up from $3.58 a month ago. Incumbent presidents typically draw criticism for gas price hikes, and President Joe Biden is no exception, who has been criticized for his work preventing domestic oil and gas leases and pipeline development.
“Joe Biden would like us to believe that we are helpless victims, unable to control our own destiny, and that OPEC or ‘corporate greed’ drives oil and gas prices, but all he has to do is “We would see prices drop to Trump-era levels as domestic production increases,” said Daniel Turner, executive director of the energy workers’ advocacy group, Power the Future, opposite The Center Square. “Such actions might even secure his re-election, but Biden could never admit that American fossil fuels are good and necessary, even at his own political peril.”
Meanwhile, average mortgage prices hit 7.09% last week, the highest in two decades. This time last year the average was about 5.13.
“The economy continues to fare better than expected and 10-year Treasury yields have risen, leading to a rise in mortgage rates,” said Sam Khater, Freddie Mac’s chief economist, in the group’s interest rate announcement. “The last time the 30-year fixed-rate mortgage was above seven percent was last November. Demand has been impacted by affordability headwinds, but low inventories remain the primary cause of the stalemate in home sales.”
Mortgage rates have risen steadily as the Federal Reserve raises the rate to combat elevated inflation, which previously rose sharply under the Biden administration before easing in recent months. The US Bureau of Labor Statistics’ Producer Price Index, a key gauge of inflation, has risen nearly 17% since President Joe Biden took office, while wages have lagged behind.
Meanwhile, polls show Americans are still worried about economic woes. The Center Square Voters’ Voices poll, conducted in partnership with Noble Predictive Insights, found that inflation and the economy still worry Americans.
This poll of 2,500 registered voters found that inflation and rising prices were the top-cited concerns for Republicans and independent voters, and second for Democrats, just behind climate change.
This concern is a political headache for Biden as his approval ratings have plummeted while he remains committed to higher prices.
Republicans were quick to criticize Biden over the weekend as buying a home became even more expensive.
“Homeownership in America is now much less affordable as mortgage rates are at their highest in over 20 years,” Rep. Elise Stefanik, RN.Y., wrote on social media. “That’s what [Bidenomics] looks like.”
However, Biden has defended his work on the economy, citing the relatively low unemployment rate, slowing inflation and recovery from COVID-era lockdowns.
“The Inflation Reduction Act benefits the American people,” Biden wrote on social media Sunday. “It’s about bringing down the costs for families, restoring tax justice, creating good-paying jobs here in America, addressing the existential threat of the climate crisis, and more.”
This article was originally published on TheCenterSquare.com and is republished with permission.
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