Interest rates

  • Interest Rates Might Save the FHA from Financial Collapse by

    The fate of the Federal Housing Administration (FHA) has become a politically-charged issue in Capitol Hill. Since 2008, the FHA has taken on a significant amount of risk as the lender of last resort in the United States. If not for Fannie Mae, Freddie Mac and the FHA, the American housing market would have suffered an even more damaging collapse since it is unlikely that the private sector could have provided the financial guarantees that the government-sponsored mortgage investors have extended to borrowers over the last few years.

  • Is Wall Street Building Steam for the Next Real Estate Bubble? by

    Warren Buffet really opened up a can of worms when he made the statement in the Spring of 2012 that he would buy "a couple hundred thousand" single family homes and hold them for a long time, at low mortgage rates. The moment that statement came from his lips, every hedge fund in the Country decided they were going to get into the business of single-family homes, and they certainly have!

  • Record-Low Long-term Mortgages Are Helping to Brighten Economic Outlook by

    The average US rates on fixed mortgages recently fell steeply and moved closer to historic lows, a shift favored by many in the mortgage marketplace. Freddie Mac, one of the country’s largest mortgage buyers, announced Thursday, April 11th, 2013, that the average rate for the 30-year fixed loan fell to 3.43 percent from 3.54 percent the previous week. These figures are very close to the 3.31 percent that was reached in November 2012, which also represented the lowest percentage recorded since 1971. The average rate on the 15-year fixed mortgage also dipped to 2.65 percent from 2.74 percent the previous week with figures only slightly above the record low of 2.63 percent in 1971.

  • Waiting for Relaxed Mortgage Lending Standards by

    The United States government has been very proactive in terms of stimulating mortgage lending activity since the disastrous collapse of the credit markets in 2008. Mortgage interest rates have been pushed down to historical low levels through the Treasury's Operation Twist and the third round of quantitative easing (QE3), which makes the government a major investor in mortgage-backed bonds. Fannie Mae, Freddie Mac and the Federal Housing Administration (FHA) now guarantee almost all mortgages originated in the U.S. these days, The White House is very involved in foreclosure prevention and mitigation programs.

  • Lower Rates Benefit Richer Homeowners by

    The Federal Reserve’s policy of buying mortgage-backed securities to keep mortgage rates low may be bolstering upper tier home values rather than helping to make homeownership more affordable for entry-level buyers.

  • Too Little, Too Late: The Fed's Reaction to the Subprime Crisis in 2007 by Rick Roque

    Hindsight may always be 20/20, but at a Federal Open Market Committee (FOMC) meeting in August of 2007, Federal Reserve Bank officials could have moved proactively to avoid the worst of the subprime mortgage meltdown of 2008.

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