How Much Will Mortgage Rates Rise When Fed Ends Support?

Discussion in 'Economics' started by misterno, Mar 16, 2010.

  1. i don't care.
  2. Who said Fed will end support? They even gave themselves a way out in the statement today.

    They know the market is propped on free money and will implode if they stop. Hence, they won't stop.
  3. S2007S


    They aren't going to end any support anytime soon, mortgage rates will stay artificially low for years.
  4. AND....Gubmint Unemployment Bennies will extend for years, AND Taxes will eventually go to 100%,...
    I once used to ask when this shit will end, but there's no point.
  5. There's a shortage of product out there now. Plenty of folks itching to buy once the Fed steps back.
  6. If banks aren't REALLY lending - who cares what the rate is??? Look at the fucking facts...some dumb fucks named "You and I AMERICANS" are guaranteeing all of the fucking horseshit loans going out the door today. Fannie and Freddie are the "ones" behind like 100% of all loans these days...go do the reading...but, be forewarned...don't do the reading without tissue - you will be crying soon thereafter!!!

  7. pitz


    And then do what? Have a property that sits vacant all year round? Rent to whom? Who cares if you can pick something up cheap, if it can never produce revenue for you, and is just going to cost you taxes.

    This is what I call penny wise, pound foolish. And if you look at hyperinflations throughout history, housing has been a terrible investment. If you look at deflations, once again, housing has been a terrible investment. About the only time housing actually thrives sustainably is when the economy is on a sustainable growth path, in which case, you'd want to own businesses anyways.
  8. ammo


    nobody's gonna buy without a loan, and the banks will go under without the fed holding them up,what's the weight of the other shoe, commercial?
  9. pitz


    At some point, there will be enough cash out there, and prices will have declined so much that houses will be cash-purchase items.

    All manias/bubbles eventually resolve this way. Overleverage is the precursor to under-leverage.

    If the fed steps back, prices go down even more...there will be lots more supply available as foreclosures will accelerate.
    #10     Mar 18, 2010