When is a market rate mortgage a government subsidy?

[CrusaderFrank]

Q. When is a market rate mortgage a government subsidy?

Dwell on it, then get back to me

 

[gipper]

When it is offered by a TBTF government protected bank and at rates artificially set below market rate, by the Federal Reserve.

 

[Bootney Lee Farnsworth]

We the People....


are fucked.

 

[Fort Fun Indiana]

When it is offered by a TBTF government protected bank and at rates artificially set below market rate, by the Federal Reserve.

Not how it works, sorry. Mortgage rates are not tethered to the prime lending rate, which, itself, is only tied to the prime lending rate by the decisions of lenders, not by any law.

 

[gipper]

When it is offered by a TBTF government protected bank and at rates artificially set below market rate, by the Federal Reserve.

Not how it works, sorry. Mortgage rates are not tethered to the prime lending rate, which, itself, is only tied to the prime lending rate by the decisions of lenders, not by any law.

Who said anything about a law?

 

[Fort Fun Indiana]

When it is offered by a TBTF government protected bank and at rates artificially set below market rate, by the Federal Reserve.

Not how it works, sorry. Mortgage rates are not tethered to the prime lending rate, which, itself, is only tied to the prime lending rate by the decisions of lenders, not by any law.

Who said anything about a law?

Nobody. Just showing the separation.

By the way, what you said was still misguided.

 

[KissMy]

When it is offered by a TBTF government protected bank and at rates artificially set below market rate, by the Federal Reserve.

Not how it works, sorry. Mortgage rates are not tethered to the prime lending rate, which, itself, is only tied to the prime lending rate by the decisions of lenders, not by any law.

Who said anything about a law?

Nobody. Just showing the separation.

By the way, what you said was still misguided.

No it was not misguided! If all those banks were not backed by government, interest rates would be much higher!

 

[Fort Fun Indiana]

When it is offered by a TBTF government protected bank and at rates artificially set below market rate, by the Federal Reserve.

Not how it works, sorry. Mortgage rates are not tethered to the prime lending rate, which, itself, is only tied to the prime lending rate by the decisions of lenders, not by any law.

Who said anything about a law?

Nobody. Just showing the separation.

By the way, what you said was still misguided.

No it was not misguided! If all those banks were not backed by government, interest rates would be much higher!

It was misguided, in that mortgage rates do not behave like the prime lending rate, seemingly tethered to the fed target rate.

There is nothing untoward happening here. Buying these mortgages is a tool used by the federal government to buffer the housing market. The rate of change of the mortgage rates can have profound effects on the entire eeconomy, and is being carefully managed by the federal government.

 

[Bootney Lee Farnsworth]

Woodrow Wilson was a fucking commie.

 

[Dragonlady]

Q. When is a market rate mortgage a government subsidy?

Dwell on it, then get back to me

When you get a tax deduction for the interest paid on your mortgage. Renters don’t get a tax break on their rent.

Next question?

 

[KissMy]

When it is offered by a TBTF government protected bank and at rates artificially set below market rate, by the Federal Reserve.

Not how it works, sorry. Mortgage rates are not tethered to the prime lending rate, which, itself, is only tied to the prime lending rate by the decisions of lenders, not by any law.

Who said anything about a law?

Nobody. Just showing the separation.

By the way, what you said was still misguided.

No it was not misguided! If all those banks were not backed by government, interest rates would be much higher!

It was misguided, in that mortgage rates do not behave like the prime lending rate, seemingly tethered to the fed target rate.

There is nothing untoward happening here. Buying these mortgages is a tool used by the federal government to buffer the housing market. The rate of change of the mortgage rates can have profound effects on the entire eeconomy, and is being carefully managed by the federal government.

Without government involvement, the "free market" interest rate would fluctuate & fewer people could afford homes. Also home mortgage deduction is a subsidy, along with Low or No down payment programs, No documentation loans, Fannie & Freddie, etc

 

[Fort Fun Indiana]

Not how it works, sorry. Mortgage rates are not tethered to the prime lending rate, which, itself, is only tied to the prime lending rate by the decisions of lenders, not by any law.

Who said anything about a law?

Nobody. Just showing the separation.

By the way, what you said was still misguided.

No it was not misguided! If all those banks were not backed by government, interest rates would be much higher!

It was misguided, in that mortgage rates do not behave like the prime lending rate, seemingly tethered to the fed target rate.

There is nothing untoward happening here. Buying these mortgages is a tool used by the federal government to buffer the housing market. The rate of change of the mortgage rates can have profound effects on the entire eeconomy, and is being carefully managed by the federal government.

Without government involvement, the "free market" interest rate would fluctuate & fewer people could afford homes.

Yes, that is often the case. Such as , right now.

 

[Toro]

Q. When is a market rate mortgage a government subsidy?

Dwell on it, then get back to me

The current rate of a 30-year confirming mortgage is 4.75%.

Yoar welcome.

 

[gipper]

When it is offered by a TBTF government protected bank and at rates artificially set below market rate, by the Federal Reserve.

Not how it works, sorry. Mortgage rates are not tethered to the prime lending rate, which, itself, is only tied to the prime lending rate by the decisions of lenders, not by any law.

Who said anything about a law?

Nobody. Just showing the separation.

By the way, what you said was still misguided.

No it was not misguided! If all those banks were not backed by government, interest rates would be much higher!

It was misguided, in that mortgage rates do not behave like the prime lending rate, seemingly tethered to the fed target rate.

There is nothing untoward happening here. Buying these mortgages is a tool used by the federal government to buffer the housing market. The rate of change of the mortgage rates can have profound effects on the entire eeconomy, and is being carefully managed by the federal government.

When the Fed raises rates, do mortgages rates go up, down, or stay the same?

 

[JBond]

When it is offered by a TBTF government protected bank and at rates artificially set below market rate, by the Federal Reserve.

Not how it works, sorry. Mortgage rates are not tethered to the prime lending rate, which, itself, is only tied to the prime lending rate by the decisions of lenders, not by any law.

Who said anything about a law?

Nobody. Just showing the separation.

By the way, what you said was still misguided.

No it was not misguided! If all those banks were not backed by government, interest rates would be much higher!

It was misguided, in that mortgage rates do not behave like the prime lending rate, seemingly tethered to the fed target rate.

There is nothing untoward happening here. Buying these mortgages is a tool used by the federal government to buffer the housing market. The rate of change of the mortgage rates can have profound effects on the entire eeconomy, and is being carefully managed by the federal government.

Carefully? Really? Since when?

 

[Fort Fun Indiana]

When the Fed raises rates, do mortgages rates go up, down, or stay the same?

They can do any of the above. For instance, just 2 years ago, the feds raised rates twice, yet mortgage rates decreased.

Mortgage rates are not tethered to the fed target rate. It's a simple fact, there is no debate to be had.

 

[Fort Fun Indiana]

Carefully? Really? Since when?

Since Baby Jaysus told them to? I'm not sure what you want from me.

 

[Siete]

subsidy?

ask Hannity

Sean Hannity is a 'welfare queen'

90$ million? he should know.

Sean Hannity Net Worth: Fox News Host Linked to Shell Companies that Bought $90 Million Worth of Properties

 

[iamwhatiseem]

Q. When is a market rate mortgage a government subsidy?

Dwell on it, then get back to me

The current rate of a 30-year confirming mortgage is 4.75%.

Yoar welcome.

Yeah but the interest rates isn't really the problem is it?

The problem is the government can't help themselves to keep adding in things for political reasons until the good thing becomes a bad thing.
The problem was and is, manipulating the market so people who can't afford a house, or more accurate - can't afford a larger mortgage, unless the government encourages banks to look the other way because they guarantee the loan. This eliminates the benefit of low interest rates because it artificially drives up the average price of a house. Net result is spectacular for banks, investment firms and spec builders...but the homeowner gets hosed.

 

[CrusaderFrank]

subsidy?

ask Hannity

Sean Hannity is a 'welfare queen'

90$ million? he should know.

Sean Hannity Net Worth: Fox News Host Linked to Shell Companies that Bought $90 Million Worth of Properties

Bingo!!!

There it is!!!

A market rate mortgage is a "subsidy" when you're an ignorant, lowbrow, broke dick "news" organization that doesn't know what mortgages or subsidies are