Are record-low interest rates masking high-cost mortgage lending?

Are record-low interest rates masking high-cost mortgage lending?

Five leading economists weigh in and the answer may surprise you

Auction.com partners with Google to predict housing trends

Nowcast will predict in real time

The New York Times rambles, and mangles mortgages along the way

Mortgage finance and mortgage regulation aren’t the paper’s strong suits
W S
Lending / The Ticker

No Fannie or Freddie could raise rates

GSEs help keep costs low for homebuyers

Housing Bubble
/ Print / Reprints /
| Share More
/ Text Size+

Here's an interesting argument that is in favor of keeping the government-sponsored enterprises around for some time: Fannie Mae and Freddie Mac help keep mortgage costs low.

Private lending would essential need to charge a higher rate for providing credit that is not under conservatorship status.

GSE reform is still years away, but it's never to early for experts to speculate.

From the article in USA Today:

"It will mean higher mortgage rates," said Mark Zandi, chief economist at Moody's Analytics. "The question is how much higher."

Typical borrowers could pay about $75 per month in extra interest payments, about half a percentage point, on an average mortgage under the Senate proposal, Zandi estimated, and about $135 more under the House plan. That's on a conforming loan of about $200,000 with the borrower providing a 20 percent down payment.

Source: USA Today
Read full story

Recent Articles by HousingWire Staff

Comments powered by Disqus