Link doesn't work. Mortgages are one of the most annoying things to analyze in the economy, up there with healthcare, because of how much it is dominated by th

Link doesn't work. Mortgages are one of the most annoying things to analyze in the economy, up there with healthcare, because of how much it is dominated by the government. In the US a bank first makes a home loan, and then later gets money from the overnight market to cover the loan... likely from the Fed. They immediately sell the loan to Fannie and Freddie, GSEs that have actually been in conservatorship by the government directly since 2008. And every part of the market is protected and micromanaged and tax advantaged to oblivion. And every bank too big to fail, and loaded up with TARP funds and their bonds bought via QE. Apply the principles of supply and demand to that, I dare you.