Below 3%

[Jolly]

Personally, I think it's not a good thing...

https://www.houstonchronicle.com/business/real-estate/article/Mortgage-rates-fall-below-3-percent-for-first-15412975.php

[Mik]

No, and there are provisions in the latest Dem bill to promote mortgages for minorities. Where have we seen this before? Recently? Oh yeah...

[taiwan_girl]

@Jolly said in Below 3%:

Personally, I think it's not a good thing...

I am not sure if it is a good thing or bad thing, but wondering why you don't think so.

ON a positive side, I think that owning a home will promote better care of it than if you are a renter. I think this will help the neighborhood as more people have a "stake or piece of interest" in the well being of the neighborhood.

On the negative side, people may get a home loan because of the low interest rates and if they change and go up, they will not be able to afford them.

[Jolly]

1. People will buy homes before they are financially able to do so or will buy more home than they can actually afford. There is a lot more to owning a home, than just making a mortgage payment.

2. Suppressed interest rates mean zero tolerance for slow pays, etc., especially if rates go up.

3. Low mortgage rates are usually a side effect of cheap money. Low interest rates kill many types of investments and lead people to over-invest in the stock market, artificially inflating values.

[taiwan_girl]

@Jolly Thanks Jolly. Good comment.s

[Doctor Phibes]

Not that long ago we were hearing calls for the "Boneheads" at the Fed to cut interest rates to zero or less.

[Copper]

That was before we heard it might help minorities.

[jon-nyc]

What happened to the 'audit the Fed' crowd?