When is a market rate mortgage a government subsidy?

[Thinker101]

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

Dwell on it, then get back to me

Umm...when Obama was in charge?

 

[Manonthestreet]

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.

Ya mean like artificially inflating the prices by articficially low rates.....so they can collect more property taxes...and the prices never will readjust to reality

 

[CrusaderFrank]

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.

I shall not phear you Mal