4 ms·
You'd need to somehow get people in the US to understand that a 30-year fixed rate mortgage (where the interest rate is anywhere close to current fed rate) is n
by dboreham 4y ago
You'd need to somehow get people in the US to understand that a 30-year fixed rate mortgage (where the interest rate is anywhere close to current fed rate) is not a real thing. It only exists because USG distorts the market such that it can exist.
- bequanna 4y agoAs the Fed has stopped purchasing MBS and mortgage rates jumped to 7-8%, people are in denial and prices have been stubbornly high. Everyone I speak with seems to think this is "temporary", however, the current rates are much closer to reality and may be here for longer.
- nradov 4y agoMortgage rates are still under 7%. https://www.fund.com/top/mortgage-purchase/rates/mob/ https://www.fund.com/top/mortgage-purchase/rates/mob/
- mschuster91 4y ago> Everyone I speak with seems to think this is "temporary", however, the current rates are much closer to reality and may be here for longer. IMO, it depends on how the war in Ukraine proceeds and if there will be signals of relaxing from China... in the end, interest rates represent systemic as well as individual risk and uncertainty, and the Russian invasion as well as the threat of a Chinese invasion into Taiwan (and a subsequent China-US or worldwide war) are the largest geopolitical risk factor by far.
- nradov 4y ago30-year fixed rate mortgages would still exist without federal government support, just like 30-year fixed rate corporate bonds. But interest rates would be higher, and there might be stricter limits on LTV ratio or PMI.
- pjc50 4y agoI don't think you can get a 30-year fixed mortgage in the UK. Or many other European countries.