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It's created by federal mortgage subsidies. If everybody's mortgage payment went up with interest rates more people would sell and drive down prices.
by dmm 3y ago
It's created by federal mortgage subsidies. If everybody's mortgage payment went up with interest rates more people would sell and drive down prices.
- nine_zeros 3y agoThat, and property tax assessment shenanigans, and corporations buying sfhs and townhomes, and foreign investors, and tax deduction on mortgage interest, and nimby blockades on construction. A future generation will look back at this society as stupid. All the wealth of the world but cannot even give people the basics.
- nomel 3y agoMost everyone has fixed rates in California. 10% in 2022: https://themortgagereports.com/93472/adjustable-rate-mortgage-trends-2022 https://themortgagereports.com/93472/adjustable-rate-mortgag...
- jeezfrk 3y agoFixed rate loans have existed forever. Private contracts are constantly filled with them. It's private enterprise cashing in as usual for those with the best credit. Not government intervention.
- supertrope 3y agoWithout Fannie Mae and Freddie Max interest rates on 30 year mortgages would be higher or everyone would have to use an ARM. On most mortgages the bank just follows these government associated agencies’ underwriting rules and immediately sells the mortgages to them.
- lotsoweiners 3y agoAnd then all of the cash buyers who are unaffected by mortgage rates would own all of the properties.