Jun 13, 2009 1
Daily Mortgage Rates Affected By the Government
AUTHOR: Colin Keller
Daily mortgage rates have been very volatile over the last three weeks. At the end of May, there were several days in which mortgage rates moved almost .5% in ONE day. This is almost unheard of, but this is what happens when the government puts their hand in pot. For the last two months, the Federal Reserve Bank has been buying up mortgage backed securities which pushed mortgage rates lower. Had the government let free markets work, it is likely that mortgage rates would be a little bit higher but they would not be acting the way they have been for the last three weeks.
Do you think that President Obama and Ben Bernanke should continue to force mortgage rates lower? Would it be better if they just let free markets work which would create the correct level for interest rates?