I agree that any increases in mortgage interest rates will take place over time. For some reason, some investors still seem to think that iceberg we scraped against was merely cute.
carlover
Nothing personal…
To me, “free market” means the taxpayer isn’t getting dragged into it. It’s true that the GSEs are corporations, but their calling card is the fact that they have an unfair advantage in the form of a discounted cost of funds; it is the taxpayers who subsidize that discount. So yeah, increasing the limits the GSEs can loan does come at the expense of the taxpayers and it does subsidize the purchases made by people who shouldn’t need to rely on public assistance.
If a borrower can’t afford the market rate perhaps they shouldn’t be borrowing that much money.
