Mortgage Rates Fall Again to New Record Lows
CARPE DIEM
Professor Mark J. Perry's Blog for Economics and Finance
Thursday, September 29, 2011
About Me
- Name: Mark J. Perry
- Location: Washington, D.C., United States
Dr. Mark J. Perry is a professor of economics and finance in the School of Management at the Flint campus of the University of Michigan. Perry holds two graduate degrees in economics (M.A. and Ph.D.) from George Mason University near Washington, D.C. In addition, he holds an MBA degree in finance from the Curtis L. Carlson School of Management at the University of Minnesota. In addition to a faculty appointment at the University of Michigan-Flint, Perry is also a visiting scholar at The American Enterprise Institute in Washington, D.C.
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4 Comments:
Why would you assume that the current rate of inflation continues, rather than using readily available market-based predictions of inflation?
and mortgage issuance continues to languish at low levels while the % of the market taken over by the federal government (freddy and fannie) continues to rise.
F+F are 75% of this market.
it's federal price fixing and market manipulation.
this spills over into the treasuries market, as banks, boxed out of the mortgage market by F+F's zero cost of capital are forced to hold balance sheets of levered US govvies.
i'm not sure there has been any point in US history when markets were so manipulated by the feds. certainly not since ww2.
While low rates are potentially good news for buyers, they represent sour grapes for home owners who bought within the past decade and can't refinance at those lower rates because the appraised values of their homes have dropped so dramatically.
These are not rates set by the market. The US has a command economy now and rates are set by the central planners who run most of the financial economy. The data tells you nothing of value except that there is a huge bubble in debt instruments that will either collapse or will require a huge intervention by the Fed. In either case the taxpayer is screwed.
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